Strategy books $19.5B quarter on bitcoin markup, wins approval for daily preferred dividends

Strategy (MSTR), the largest corporate bitcoin holder, reported $19.53 billion in third-quarter net income, up from $2.79 billion a year earlier, according to The Block's reporting on the company's release. The jump was driven almost entirely by a $20.91 billion gain on the rising value of its bitcoin — not by its underlying business. Revenue from Strategy's software unit actually fell 3% year over year, to $125.4 million.

The company said it held 848,517 bitcoin as of Oct. 25, up 26% year to date. Under current fair-value accounting rules, unrealized gains on those holdings flow through net income, which is what produced the headline figure.

Separately, holders of Strategy's four preferred-stock series — STRC, STRF, STRK and STRD — approved an amendment letting dividends accrue daily rather than on the prior schedule. The change passed with 99.3% of votes cast, per results Saylor shared. STRC's first daily record date is Nov. 1, with payment Nov. 2; STRF, STRK and STRD follow with a Jan. 1 record date and Jan. 4 payment. Thereafter, every calendar day is a record date, paid the next business day. Strategy also said STRC "returned to health" after $2.04 billion of repurchases.

CFO Andrew Kang will step down Nov. 5, with COO Reza Virasteh becoming CFO in January 2027. MSTR shares fell about 3.5% in Thursday after-hours trading.

Key facts

• Q3 net income: $19.53B, vs. $2.79B a year earlier — driven by a $20.91B bitcoin gain (The Block, citing the company's release).
• Software revenue: $125.4M, down 3% YoY (The Block).
• Bitcoin held: 848,517 BTC as of Oct. 25, up 26% YTD (The Block).
• Preferred dividend amendment: approved with 99.3% of votes cast; daily accrual begins Nov. 1 for STRC, Jan. 1 for STRF/STRK/STRD (results per Saylor).
• STRC repurchases: $2.04B (The Block).
• CFO Kang departs Nov. 5; Virasteh becomes CFO January 2027 (The Block).
• MSTR down ~3.5% after hours (The Block).

The real-world read

The $19.5 billion looks like a blowout, but it's an accounting markup on bitcoin the company still holds, not cash earned. The operating business shrank. The daily-dividend move matters because Strategy funds BTC buying through these preferred shares, and the obligations are growing: K33 estimated earlier this month that STRC alone added roughly $725 million to Strategy's annual dividend bill. That STRC "returned to health" only after $2.04 billion of buybacks is worth noting — the company is spending to defend a security it uses to raise money. Framing like "the next bitcoin bull market" and "Digital Credit intends to lead" the "24/7/365" financial system comes from Executive Chairman Michael Saylor and CEO Phong Le — interested parties selling the model, not neutral read-outs. A CFO handoff with a two-month gap before the successor formally takes the title is the kind of detail a release glosses; the reasons weren't disclosed.

Opinion, and whose

• Saylor: "We're at the beginning of the next bitcoin bull market," citing bank adoption and institutional demand. A forecast from the company's chairman, not a fact.
• Le: daily dividends are "a natural step toward the tokenized, 24/7/365 financial system." The CEO's pitch for the preferred-stock strategy.

Sources

• The Block (business desk, Oct. 29) — Q3 figures, BTC holdings, dividend-amendment vote and schedule, STRC repurchases, CFO transition, stock move, and the Saylor/Le quotes; a reputable secondary outlet reporting on Strategy's own earnings release. The release itself and the executive quotes are the company's own marketing and are treated as such above. K33's dividend-obligation estimate reached via The Block.

Not financial advice.