Strategy reported an operating income of $20.91 billion, a record, in the third quarter and announced that Chief Financial Officer Andrew Kang will step down on November 5.
Almost all of the quarter’s profit was a paper gain on its Bitcoin.
Reza Virasteh takes over finance on January 1, 2027
Kang is leaving as CFO after four and a half years and will be an advisor until December 31. Reza Virasteh, the company’s executive vice president of operations, will become CFO on Jan. 1, 2027.
In the meantime, the finance team is run by CEO Phong Le. Le will lead the finances for the bitcoin strategy starting in January and will share principal financial officer duties with Virasteh, according to the Oct. 29 earnings release.
“Q3 operating income of $21 billion was the largest ever in Strategy’s history,” Kang said in the release. He called serving as CFO “an honor and privilege.”
Operating income a year earlier was $3.89 billion. Digital assets alone added $20.91 billion in gains this quarter.
Net income was $19.53 billion, or $44.75 a diluted share, compared with $2.79 billion and $8.42 in the third quarter of 2025. Preferred dividends of $419.6 million diminished the common shareholders’ share to $19.12 billion.
Software revenue declined to $125.4 million, down 3% from $128.7 million a year earlier. Gross margin was 71%.
Bitcoin-led losses hit $12.54 billion in the first quarter and $8.22 billion in the next, meaning the first nine months were $1.23 billion in the red, or $6.27 a diluted share.
Even Strategy’s own yardsticks look backwards. Year to date, it posted a BTC Yield of -3.7%, a BTC Gain of -24,947 bitcoin and a BTC $ Gain of -$2.03 billion, so each share now carries less bitcoin than in January.
Holdings were at 848,517 bitcoin on October 25, a leap of 26% this year. Cost basis was $64.02 billion, about $75,446 per coin.
The market value on October 23 was $68.90 billion and the Bitcoin price was $81,200.
The company said Bitcoin was up 43% and MSTR was up 76% in the quarter. Sales of stock under its at-the-market program raised $5.41 billion net in the quarter and $21.23 billion raised in 2026 makes Strategy the fourth-largest U.S. equity issuer this year.
“We’re at the beginning of the next bitcoin bull market,” Executive Chairman Michael Saylor said in the release. He cites banks getting on board with bitcoin and a price 21% above its 200-week moving average.
MSTR was off about 3.5% in after-hours trading on Oct. 29. Bitcoin dropped below $77,000 on the same day.
Shareholders back daily preferred dividends with 99.3% of votes
Strategy has sold about $431.8 million of bitcoin this year to pay for some of its preferred dividends and STRC buybacks. Cryptopolitan reported it sold 1,638 bitcoin in the week to August 2 for about $104.7 million.
Strategy’s common stockholders voted on October 28 to permit STRC, STRF, STRK and STRD dividends to accumulate on a calendar day basis. The measure got 99.3% of the votes cast, according to Strategy’s October 28 filing.
STRC changes November 1. STRF, STRK and STRD follow on January 1, 2027.
This year STRC buybacks were approximately $2.04 billion at an average price of $97.39 per share, ~2.6% below its stated amount of $100. Strategy maintains STRC dividend rate at 12.00%.
USD Assets are at $5.07 billion, which the company says would cover about 3.4 years of preferred dividends and interest. The USD Reserve alone stands at $4.83 billion, up from $3.225 billion on July 20.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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