Strategy posts record profit on bitcoin gains, shares fall on revenue miss

Strategy Inc., a notable player in the tech industry, announced its third quarter earnings, revealing an impressive profit of $44.75 per share, a stark contrast to the analyst's prediction of $13.86. However, the company's revenue of $125.4 million fell short of the estimated $128.03 million, marking a 3% decline compared to the previous year's $128.7 million. Consequently, the company's shares experienced a 1.8% decrease in value following the release of these results.

Despite the revenue shortfall, Strategy reported a remarkable operating income of $20.91 billion for the third quarter, driven by an astonishing $20.91 billion gain on digital assets. This figure represents a significant leap from the $3.89 billion recorded in the same period last year. The company's net income attributable to common stockholders soared to $19.12 billion, a substantial increase from the $2.65 billion earned in the third quarter of 2025.

The third quarter of 2026 marked a record in Strategy's history, with an operating income of $21 billion, the highest on record. The company also made strides in expanding its equity capital, having raised $21 billion, and increased its ownership in bitcoin by 26% year-to-date, despite the challenging market conditions. As of October 25, 2026, Strategy owned approximately 848,517 bitcoins, valued at a substantial $68.90 billion, marking a 26% increase year-to-date.

Furthermore, Strategy purchased $14.33 billion worth of bitcoin during the period and raised $21.23 billion in capital, positioning it as the fourth-largest equity issuer in the U.S. The company also took a step towards enhancing shareholder returns by repurchasing $2.04 billion of its STRC preferred stock at an average price of $97.39 per share and plans to start daily dividends on STRC from November 1, 2026.

A notable change in leadership is also on the horizon. Andrew Kang, the current CFO, will step down from his position on November 5, 2026, and will be succeeded by Reza Virasteh, who is set to assume the role starting January 1, 2027. This strategic move underscores the company's commitment to maintaining its competitive edge in the dynamic tech landscape.