TheBlock
Strategy reported $19.53 billion in third-quarter net income, up from $2.79 billion a year earlier, after a $20.91 billion gain on its bitcoin holdings drove record operating income. The company held 848,517 BTC as of Oct. 25, up 26% year to date. Shareholders also approved daily dividend accrual for four preferred shares, with 99.3% of votes cast supporting the change.
Why it matters
The amendment shifts dividends on STRC, STRF, STRK and STRD from the previous schedule to daily accrual. After initial record and payment dates, each calendar day will be a record date, with payment on the next business day. CEO Phong Le described the change as a step toward a tokenized, 24/7/365 financial system.
Strategy is leaning on preferred-share offerings to finance bitcoin purchases. K33 estimated STRC had added $725 million to the company’s annual dividend obligations, putting the cost of that funding strategy in focus alongside its BTC accumulation.
Market impact
STRC’s first record date is Nov. 1, with payment on Nov. 2. STRF, STRK and STRD will have a Jan. 1 record date and Jan. 4 payment before moving to the daily schedule. Strategy also said STRC had “returned to health” through $2.04 billion of repurchases.
The results highlight the scale of Strategy’s exposure to bitcoin: a $20.91 billion gain on holdings drove the quarter’s reported profit, while software revenue fell 3% year over year to $125.4 million. MSTR shares fell about 3.5% in after-hours trading. CFO Andrew Kang is set to step down Nov. 5, with COO Reza Virasteh expected to become CFO in January 2027.
Frequently asked questions
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How many bitcoin did Strategy hold at the end of October?
Strategy held 848,517 BTC as of Oct. 25, up 26% year to date.
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What change did preferred shareholders approve?
Holders of STRC, STRF, STRK and STRD approved daily dividend accrual, with 99.3% of votes cast supporting the amendment.
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How will the new dividend schedule work?
After the initial record dates, every calendar day will be a record date, with payment on the next business day.
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How much did Strategy's bitcoin holdings gain in Q3?
Strategy reported a $20.91 billion gain on its bitcoin holdings, which drove record operating income and contributed to $19.53 billion in net income.
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What happened to MSTR shares after the results?
MSTR shares fell about 3.5% in after-hours trading.
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