Key Highlights

  • Operating income was $20.91 billion, compared with $3.89 billion in the third quarter of 2025, entirely from a digital asset gain.
  • Diluted EPS was $44.75, against $8.42 a year earlier.
  • Total revenues were $125.4 million, down 3% from $128.7 million.
  • Bitcoin holdings were approximately 848,517 as of October 25, 2026, up 26% year to date.
  • USD Assets reached $5.07 billion, providing about 3.4 years of coverage for Dividend and interest obligations.

Operating income driven by a digital asset gain

Strategy (NASDAQ:MSTR) describes itself as the world's first Bitcoin Treasury Company. It holds bitcoin, issues preferred securities and runs an enterprise analytics software business. It reported third quarter 2026 results on October 29, 2026.

Operating income was $20.91 billion, versus $3.89 billion a year earlier. The company said both figures include a gain on digital assets of the same size, $20.91 billion and $3.89 billion respectively, so the software operations did not add to the headline figure on a calculated basis.

Net income was $19.53 billion, compared with $2.79 billion. Net Income attributable to common stockholders was $19.12 billion after $419.6 million of preferred dividends, up from $139.9 million a year ago, which works out to about three times the prior level on a calculated basis.

Software Revenue edges lower while Margin improves

Total revenues were $125.4 million, a 3% decrease from $128.7 million. Gross Profit was $89.6 million, a 71% gross margin, compared with $90.7 million and a 70% margin in the third quarter of 2025.

The revenue base is small next to the digital asset gain, so diluted EPS of $44.75 mainly reflects bitcoin valuation.

Bitcoin holdings and the year to date picture

As of October 25, 2026, the company held approximately 848,517 bitcoin, a 26% increase year to date. The original cost basis was $64.02 billion, or about $75,446 per bitcoin, against a Market Value of $68.90 billion at an October 23, 2026 bitcoin price of $81,200. On a calculated basis, that is roughly $4.88 billion above cost.

The company purchased $14.33 billion of bitcoin year to date and sold about $431.8 million to fund part of its preferred dividends and STRC buybacks.

In the third quarter it received about $5.41 billion of net proceeds from sales of its common stock under the at-the-market program, plus $58.7 million between October 1 and October 23, 2026. Cash and cash equivalents were $2.50 billion, up from $1.71 billion at June 30, 2026.

STRC repurchases and daily dividends

Management said it is working to return STRC, its variable rate preferred, to health. Year to date it repurchased 20,980,508 shares, representing $2.10 billion of notional value, for about $2.04 billion at an average of $97.39 per share, roughly a 2.6% discount to the $100 stated amount. About $956.7 million remains under the $3.0 billion repurchase program.

The STRC dividend rate was held at 12.00%. Following Shareholder approval on October 28, STRC moves to daily dividends starting November 1, 2026, with STRF, STRK and STRD following on January 1, 2027. Cumulative dividends paid on all preferred stock total $1.48 billion.

CFO transition and what to watch

Andrew Kang will step down as CFO effective November 5, 2026, and will advise through December 31, 2026. Phong Le will act as principal financial officer from November 6, and Reza Virasteh, currently Executive Vice President of Operations, becomes CFO and co-principal financial officer on January 1, 2027.

Readers following the name will likely watch bitcoin price swings that drive reported earnings, STRC trading relative to its $100 stated amount, and how the finance team handles the handover.