Strategy’s Bitcoin Holdings Contribute Heavily To $2.83 Billion Q3 2025 Earnings

Strategy Inc. (NASDAQ: MSTR), the corporate Bitcoin treasury firm founded by Michael Saylor, has reported a net income of $2.8 billion in Q3 2025, marking the second consecutive fiscal quarter of positive earnings.

The income growth, driven by unrealized gains on its massive Bitcoin (BTC) holdings, represents a sharp turnaround from the $340 million in losses recorded during the same quarter last year.

Strategy reported $48 billion in operating income and $20 billion in unrealized gains from its Bitcoin holdings, solidifying its position as the world’s largest corporate holder of the alpha cryptocurrency. The Virginia-based company now owns approximately 640,808 BTC, valued at $70.6 billion as of October 26.

Michael Saylor’s Strategy Reports $2.8 Billion Net Income For Q3 2025, with Bitcoin Holdings Returning $20 Billion in Unrealized Profits

According to its Q3 financial results released on Thursday, the business intelligence and Bitcoin treasury firm posted a net income of $2.8 billion and diluted earnings of $8.42 per share for the three months ended September 30. For comparison, Strategy’s earnings for Q3 2024 were $340.2 million, or $1.72 per share, with operating costs reaching $3.9 billion for the quarter.

Its profitability stems largely from gains on its Bitcoin holdings, which were acquired at an average cost of $74,032 per BTC, or a total cost basis of $47.4 billion. As Bitcoin currently trades at above $109,000, the company is sitting on substantial unrealized gains.

Strategy’s operating income hit $3.9 billion for the quarter, a drastic reversal from a $432.6 million operating loss in the same period last year. The unrealized appreciation on the company’s Bitcoin position was made possible by a new fair value accounting rule that came into effect in January 2025.

Since the turn of the year, Strategy’s (formerly MicroStrategy) business model has evolved from a software development firm into a full-blown Bitcoin treasury company with a “buy-and-hold” strategy, fundamentally transforming how the market values it. The approach involves the firm holding Bitcoin as its primary treasury reserve asset, with its stock price often reflecting changes to BTC’s market price.

This allows the company to raise additional capital through various capital markets instruments, including common stock and preferred shares. The capital is then used for fresh Bitcoin purchases, creating a self-reinforcing cycle. So far this year, Strategy has achieved a BTC yield of 26% and a BTC dollar gain of $12.9 billion, based on Bitcoin changing hands at $110,000 per coin.

Until Q4 2024, the company could only report impairment losses if Bitcoin fell below its purchase price. Gains remained unrealized unless the cryptocurrency was sold. However, the updated accounting rules now allow Strategy to recognize gains from Bitcoin’s market appreciation.

This has transformed Strategy’s financial statements, as the company now reports quarterly profits that reflect the market value of its Bitcoin holdings, providing greater transparency into the economics of its treasury strategy.

Strategy Targets Operating Income of $34 Billion and $80 EPS by Year-End

Strategy CEO Phong Le reaffirmed in the quarterly report that the company’s full-year target is $20 billion in BTC dollar gains and 30% BTC yield. CFO Andrew Kang maintained the guidance for $34 billion in operating income, $24 billion in net income, and $80 in earnings per share (EPS) for 2025, based on a forecast that Bitcoin’s price hits $150,000 by year-end.

Meanwhile, Strategy’s core software business generated $128.7 million in revenue, up 10.9% year-over-year, with its subscription service showcasing a strong growth rate of 65.4%.

Recently, the S&P awarded Strategy a credit score of “-B”, which the executive chairman and co-founder, Michael Saylor, said should expand the market for the company’s securities. Strategy continues to expand its suite of preferred stock offerings, launching the STRC variable-rate perpetual preferred, which carries a dividend that adjusts monthly on MSTR’s trading price. STRC’s dividend rate has been increased by 25 basis points to 10.50% for November 2025.

MSTR closed Thursday’s trading session at $254.57, down 4.91% daily, 21% over the past month, and approximately 15.15% year-to-date, as investors are continually assessing the volatility inherent in crypto asset treasury strategies. This is in stark contrast to Bitcoin’s 51.74% yearly gain. The divergence suggests that the market may be pricing in concerns over the stock’s valuation, dilution from capital raises, and regulatory ambiguities.

At the time of writing, Bitcoin (BTC) is trading at $110,008 – down 0.43% in 24 hours.