CryptoSlate
Strategy reported $20.9 billion in third-quarter operating income, driven almost entirely by a fair-value gain on its Bitcoin holdings, and Michael Saylor declared the start of a new bull market. But the company’s year-to-date BTC yield fell to -3.7% as of Oct. 25, even after it increased its Bitcoin holdings by 26% this year to 848,517 BTC.
Why it matters
BTC yield measures the change in Bitcoin held per assumed diluted share, not shareholder investment returns. Its fall from 4.5% in July suggests that growing the treasury has not kept pace with potential share dilution. Strategy raised about $21.2 billion through capital markets in the first 10 months of 2026, yet its third-quarter Bitcoin purchases totaled 7,218 BTC against sales of 5,552 BTC.
The preferred-stock strategy is also under scrutiny. STRC carries a variable rate near 12%, and Strategy said it sold about $431.8 million in Bitcoin in 2026 to help fund preferred dividends and STRC repurchases. K33’s model estimated that a simpler approach could have produced nearly the same Bitcoin holdings with about $725 million less in annual dividend obligations. Bitwise countered that investors may be overpricing Strategy’s credit risk.
Market impact
Strategy reported a -24,947 BTC gain metric and a -$2.03 billion BTC dollar gain, using a Bitcoin price of $81,200 on Oct. 23. It also reported roughly $5 billion in designated dollar assets, estimated to cover 3.4 years of preferred dividend and interest payments at current rates. MSTR rose 76% in the third quarter, compared with Bitcoin’s 43% gain, even as Strategy recorded a $1.23 billion net loss for the first nine months of 2026.
The debate now centers on whether STRC’s financing costs can be justified by the Bitcoin it helps Strategy acquire, and whether the company can sustain those obligations as it expands its preferred-stock program.
Frequently asked questions
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What does Strategy's negative BTC yield measure?
BTC yield measures the percentage change in Bitcoin holdings per assumed diluted share. It is not a measure of shareholder investment returns.
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How did Strategy's BTC yield change in 2026?
Strategy reported year-to-date BTC yield of -3.7% as of Oct. 25, down from 4.5% in July.
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Why is Strategy's STRC financing under scrutiny?
STRC carries a variable dividend rate near 12%. Strategy said it sold about $431.8 million in Bitcoin in 2026 to help fund preferred dividends and STRC repurchases.
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How do K33 and Bitwise differ on Strategy's financing risks?
K33 questioned whether STRC's costs justify its contribution to Bitcoin accumulation. Bitwise argued that investors may be overpricing Strategy's credit risk.
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How much liquidity did Strategy report for preferred payments?
Strategy reported about $5 billion in designated dollar assets, which it estimates could cover 3.4 years of preferred dividend and interest payments at current rates.
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