Strategy reported its strongest quarterly operating result on record after a rebound in Bitcoin lifted the marked value of its holdings. The company posted $20.91 billion in operating income for the third quarter of 2026, while net income rose to $19.53 billion, or $44.75 per diluted share, from $2.79 billion in the same quarter a year earlier.
The result was dominated by the accounting impact of Bitcoin’s price recovery rather than by the company’s underlying software revenue. Strategy marks its Bitcoin holdings to market each quarter, meaning changes in the cryptocurrency’s value are reflected in its earnings. According to Bitcoin Magazine, Chief Financial Officer Andrew Kang described the quarter’s operating income as the largest in Strategy’s history while announcing that he would leave the company.
Bitcoin holdings drive the quarterly result
Strategy held 848,517 Bitcoin, valued at $68.9 billion on October 23 when Bitcoin traded at $81,200. The company’s average acquisition cost was $75,446 per Bitcoin, leaving the position with an unrealized gain at that point.
Kang attributed much of the quarter’s performance to the company’s continued accumulation. Strategy said its Bitcoin holdings had increased by 26% since the beginning of the year, despite what management called a challenging Bitcoin market.
The strong operating and net income figures came alongside weaker revenue. Total revenue declined 3% from a year earlier to $125.4 million, below the $127.2 million analyst estimate cited in the report. Gross profit was $89.6 million, representing a 71% margin, compared with a 70% margin in the prior-year quarter.
Strategy ended September with $2.50 billion in cash and equivalents and $3.40 billion in short-term investments. Those balances provide liquidity alongside the company’s Bitcoin holdings, although the company continues to face obligations tied to its preferred securities.
Bitcoin per share remains under pressure
Despite the increase in the total Bitcoin holdings, Strategy’s preferred measure of Bitcoin per share weakened during 2026. The company reported a year-to-date BTC yield of negative 3.7%, meaning that each share represented less Bitcoin than it did at the start of the year.
On a dollar basis, the company said its Bitcoin position showed a $2.03 billion loss over the same period. Strategy has also sold approximately $431.8 million of Bitcoin this year to help fund preferred dividends and stock repurchases.
The company raised $21.23 billion in capital during 2026. That included $5.41 billion in net proceeds from its at-the-market stock program during the third quarter. A substantial portion of the capital was directed toward its preferred stock. Strategy repurchased 20,980,508 STRC shares for $2.04 billion, paying an average of $97.39 per share against a stated value of $100.
Chief Executive Phong Le said the buyback was intended to strengthen STRC’s position. Strategy plans to continue repurchasing the preferred shares while they trade below par, and approximately $956.7 million remains available under the authorization.
The company reported total dollar reserves of $5.07 billion, consisting of a $4.83 billion USD Reserve and $242.4 million of USD Cash. Strategy said those reserves cover 3.4 years of dividend and interest obligations. Its board left the STRC dividend rate unchanged at 12.00% as the security approached its $100 stated amount.
Daily dividends begin for preferred shares
Shareholders approved a change to daily dividend payments on October 28. STRC is scheduled to begin paying dividends daily on November 1, while STRF, STRK and STRD are scheduled to follow on January 1, 2027.
Strategy presented the change as part of its broader effort to build a financial structure designed for continuous trading. The company also said it expects preferred distributions to qualify as a non-taxable return of capital for at least 10 years because it does not expect to have positive accumulated earnings and profits. It advised shareholders to consult their own tax advisers regarding individual tax treatment.
STRC reached $99.99 earlier in the day, close to its $100 stated value. Trading at or above that level could reopen the possibility of using STRC issuance to fund additional Bitcoin purchases, but Strategy has not confirmed that it will restart share issuance.
Current market picture
Moneyiar market data at the stated times shows Bitcoin at $80,430.506808014 as of October 25, 2026, at 22:39 +03:30. Bitcoin was down 0.08% over 24 hours and 1.32% over seven days.
Other tracked assets showed mixed performance. Billions Network (BILL) was priced at $0.0139971939 as of September 21, 2026, at 01:39 +03:30, down 0.59% over 24 hours but up 10.04% over seven days. FUNToken (FUN) stood at $0.0089182414 as of October 25 at 22:39 +03:30, up 1.62% in 24 hours and 0.08% over seven days. RedStone (RED) was $0.1452603192 at the same October 25 timestamp, down 2.72% over 24 hours and up 6.36% over seven days.
