Strategy On Thursday, it was announced that the company's revenue for the third quarter of 2026 reached a record high of $20.91 billion. A large portion of this revenue came from the book gains on the company's Bitcoin holdings.
Net profit reached $19.53 billion, equivalent to $44.75 in diluted earnings per share, which is higher than the $2.79 billion from a year ago.
Chief Financial Officer Andrew Kang announced his resignation in the same announcement, stating: "The $21 billion in revenue for the third quarter is the highest in Strategy's history."
Strategy Values its Bitcoin holdings quarterly based on market capitalization, so price changes are directly reflected in earnings. Bitcoin rose during that quarter. By October 23rd, the company held 848,517 Bitcoins worth $68.9 billion, at a trading price of $81,200 at that time. Calculated at an average cost of $75,446, these holdings were in a profitable position on the books.
Kang attributed this quarter's performance to continuous buying, stating that the company "has increased our Bitcoin holdings by 26% from the beginning of the year to now in a challenging Bitcoin market."
Total revenue decreased by 3% year-on-year to $125.4 million, falling short of analysts' forecast of $127.2 million. Gross profit was $89.6 million, with a gross margin of 71%, which is higher than the 70% recorded a year ago. As of the end of September, the company held $2.5 billion in cash and cash equivalents, as well as $3.4 billion in short-term investments.
The Bitcoin indicator per share of Strategy has declined.
The 'Bitcoin per share' indicator, which is used by management as a primary measure, has changed in the opposite direction. BTC yield It showed a negative 3.7% for the year, which means that the number of Bitcoins corresponding to each share is less than it was in January. Calculated in US dollars, Bitcoin holdings incurred a loss of 2.03 billion US dollars during the same period. To pay preferred stock dividends and for stock repurchases, the company has sold approximately 431.8 million US dollars worth of Bitcoins this year, as stated in the announcement.
Strategy raised a total of $21.23 billion in capital in 2026, with the third quarter alone generating a net income of $5.41 billion from its market-price issuance plan. Subsequently, the company used a significant portion of this funds to repurchase its own preferred stock. The company repurchased 20,980,508 shares of STRC at an average price of $97.39 per share, costing $2.04 billion, which is lower than the par value of $100 per share.
CEO Phong Le stated that this repurchase plan is aimed at making the security more stable: “Strategy demonstrates the commitment to restore STRC to a healthy state.” Management indicated that they intend to continue purchasing as long as STRC remains below par value, and there is still approximately $956.7 million remaining within the currently authorized amount.
The company currently has a total of $5.07 billion in US dollar reserves, which includes $4.83 billion in USD Reserve and $242.4 million in USD Cash. Strategy indicates that this buffer is sufficient to cover 3.4 years of dividend and interest obligations. The board of directors maintains a dividend yield of STRC at 12.00% to support its trading at a par value of nearly $100.
STRC Switch to Daily Dividends
Shareholders approved the change to daily dividends on October 28th. STRC will start paying daily dividends on November 1st, while STRF, STRK, and STRD will follow suit from January 1, 2027.
Le describes this change as a step towards a different market: "Daily dividends are a natural step towards a tokenized, 24/7/365 financial system. Digital Credit is building for that world, and Strategy intends to lead it."
Strategy also expects that the distribution of its preferred stock will be considered a tax-exempt capital return over a period of 10 years or longer, as the company does not anticipate any positive cumulative earnings or profits. Shareholders should consult their own tax advisors.
However, the stock price of STRC is approaching $100. Earlier today, STRC reached $99.99, and once it returns above its par value, Bitcoin purchase financing will be reopened. As mentioned earlier, shareholders have approved a daily dividend to increase liquidity and reduce price volatility. However, it is not yet confirmed whether Strategy will restart the issuance of STRC stocks.
