Strategy Reports $19.53 Billion in Third Quarter Profit on a $20.91 Billion Bitcoin Gain

Strategy, the company formerly known as MicroStrategy, reported third quarter net income of $19.53 billion, or diluted earnings of $44.75 a share, as a rising bitcoin price turned its holdings into the largest profit in the company's history by a wide margin. A year earlier, net income was $2.79 billion, or $8.42 a share.

Operating income was $20.91 billion, compared with $3.89 billion in the third quarter of 2025, and the company said the figure includes a $20.91 billion gain on its digital assets during the quarter. Net income attributable to common stockholders was $19.12 billion, after $419.6 million of dividends on preferred stock.

A software business beside a bitcoin treasury

The operating business underneath those numbers is far smaller. Total revenues were $125.4 million, down about 3 percent from $128.7 million a year earlier, and gross profit was $89.6 million at a 71 percent gross margin. Seeking Alpha reported that earnings of $44.75 a share beat estimates by $21.86, while revenue of $125.4 million missed estimates by $3.58 million. MarketBeat put the consensus lower, at $20.19 a share on revenue of $127.76 million, and noted that its revenue figure for the quarter was $125.43 million. The two services did not agree on the consensus estimate, and both sets of figures are reported here as published.

The Associated Press earnings snapshot likewise reported third quarter earnings of $19.53 billion and net income of $44.75 a share, ahead of Wall Street expectations.

The holdings behind the profit

As of October 25, 2026, Strategy held 848,517 bitcoin. Its holdings were up 26 percent in value terms year to date in 2026 on the measure the company reported, the third quarter gain on digital assets was $20.91 billion, and it had purchased $14.33 billion of bitcoin year to date.

The balance sheet grew with the profit. As of September 30, 2026, Strategy held cash and cash equivalents of $2.50 billion, up from $1.71 billion on June 30, and short term investments of $3.40 billion, up from $736.1 million on June 30.

The quarter underlines what Strategy has become. Its software revenue moved little, while a single quarter of bitcoin gains produced operating income more than five times the level of a year earlier, and its results now turn mainly on the price of the asset it holds.