Strategy reported $19.53 billion in net income for the third quarter of 2026, driven primarily by gains in the value of its Bitcoin holdings, while disclosing approximately $431.8 million in Bitcoin sales during the year.
The company announced its results on October 29, reporting diluted earnings of $44.75 per share, compared with $8.42 in the corresponding quarter of 2025. Operating income reached $20.91 billion, compared with $3.89 billion a year earlier, reflecting a $20.91 billion gain on digital assets.
The increase was largely attributable to fair-value accounting, under which changes in Bitcoin’s market value are recognized in reported earnings rather than only when the cryptocurrency is sold. Strategy’s underlying software business generated $125.4 million in quarterly revenue, down 3% from $128.7 million a year earlier.
Net income attributable to common shareholders totaled $19.12 billion after accounting for $419.6 million in preferred-stock dividends.
Bitcoin Holdings Rise Despite Negative Yield
As of October 25, Strategy held approximately 848,517 BTC, representing a 26% increase in its cryptocurrency holdings since the beginning of 2026. The company reported an aggregate acquisition cost of $64.02 billion, equivalent to an average purchase price of approximately $75,446 per Bitcoin.
At the October 23 reference price of $81,200, those holdings were valued at approximately $68.90 billion. Strategy disclosed $14.33 billion in Bitcoin purchases during 2026, supported by substantial capital-market fundraising. The company raised $21.23 billion during the year, including approximately $5.41 billion in net proceeds from at-the-market equity offerings during the third quarter.
However, its Bitcoin yield, a company-defined measure of changes in Bitcoin holdings per assumed diluted share, stood at negative 3.7% year to date. Strategy also reported a negative BTC Gain of 24,947 BTC and a negative BTC Dollar Gain of $2.03 billion.
These figures indicate that the company’s Bitcoin holdings per diluted share declined despite an increase in its total cryptocurrency reserves. The divergence highlights the effects of equity issuance and capital-structure changes on existing shareholders.
Bitcoin Sales Fund Dividends and Preferred Share Buybacks
Strategy confirmed that it sold approximately $431.8 million in Bitcoin during 2026 to fund part of its preferred-stock dividends and repurchases of STRC preferred shares. The company repurchased approximately 20.98 million STRC shares for $2.04 billion at an average price of $97.39 per share.
Approximately $956.7 million remains available under its $3 billion repurchase authorization. Strategy also disclosed board authorization to sell Bitcoin to fund its dollar reserve, meet preferred dividends and interest obligations, and support securities repurchases.
The company reported $5.07 billion in dollar-denominated assets, providing an estimated 3.4 years of coverage for preferred dividends and debt interest. The transactions mark a development in Strategy’s treasury model, which historically emphasized accumulating Bitcoin through equity and debt issuance.
Although the company continues to expand its holdings, Bitcoin sales are now being used to support ongoing financial commitments. Strategy also announced that Chief Financial Officer Andrew Kang will step down on November 5, with Chief Executive Phong Le assuming interim financial responsibilities.
Reza Virasteh is scheduled to become CFO on January 1, 2027. The results illustrate the growing distinction between Strategy’s reported accounting profits, underlying operating performance and Bitcoin accumulation strategy.
Future earnings will remain sensitive to cryptocurrency price movements, while preferred dividends, securities repurchases and shareholder dilution will influence the economics of its treasury holdings.
