Strategy Stock Falls After $19.5B Q3 Profit Driven by Bitcoin Gains

TLDR

• Strategy reported $19.53 billion in third-quarter net income, up from $2.79 billion a year earlier, driven by a $20.91 billion gain on its Bitcoin.
• The company held 848,517 Bitcoin as of Oct. 25, up 26% year to date.
• Michael Saylor said Strategy could create up to $30 billion in digital credit without selling more common stock.
• Preferred shareholders approved daily dividend accrual with 99.3% of votes cast.
• CFO Andrew Kang will step down on Nov. 5, with Reza Virasteh taking over on Jan. 1, 2027.

Strategy reported $19.53 billion in net income for the third quarter of 2026. That is up from $2.79 billion in the same period last year.

The jump came mostly from a $20.91 billion gain in the value of the company’s Bitcoin holdings. That gain also pushed operating income to a record.

Strategy held 848,517 Bitcoin as of Oct. 25. Its holdings are up 26% since the start of the year.

Revenue from the company’s software business fell 3% from a year earlier to $125.4 million.

Strategy shares fell about 3.5% in after-hours trading on Thursday following the results.

Saylor Points to $30 Billion in Credit Capacity

During the earnings call, executive chairman Michael Saylor said the company could create as much as $30 billion in digital credit. He said this could be done using its current balance sheet.

Saylor said Strategy would not need a new common stock raise or a higher Bitcoin price to do so. “We could create $10 billion, $20 billion, $30 billion of digital credit,” he said.

The $30 billion figure is a possible capacity. It is not an announced fundraising target.

CEO Phong Le said digital credit would be the main way the company buys more Bitcoin. “The primary way to acquire Bitcoin is by issuing digital credit,” Le said.

Le explained that if Strategy raised $1 billion to $2 billion in a month through its STRC preferred shares, some of the money could go into dollar reserves. The rest would be spent on Bitcoin.

In a release, Saylor said, “We’re at the beginning of the next bitcoin bull market.” He added that Strategy’s digital credit has $16 billion in notional value across ten publicly listed securities.

The company also said STRC “returned to health” after it carried out $2.04 billion in repurchases. Research firm K33 estimated earlier this month that STRC had added $725 million to Strategy’s yearly dividend costs.

Daily Dividends and a CFO Change

Holders of Strategy’s STRC, STRF, STRK and STRD preferred shares voted this week to let dividends build up daily. The change passed with 99.3% of votes cast, according to Saylor.

“Daily dividends are a natural step toward the tokenized, 24/7/365 financial system,” Le said on Thursday.

Strategy also said chief financial officer Andrew Kang will step down on Nov. 5 for personal reasons. Le will oversee the finance team until current chief operating officer Reza Virasteh becomes CFO on Jan. 1, 2027.

STRF, STRK and STRD will have a Jan. 1 record date and a Jan. 4 payment. After that, every calendar day will be a record date, with payment on the next business day.

The first payout under the new system is days away. STRC’s first record date is Nov. 1, with payment set for Nov. 2.

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