Strategy Posts a $19.5 Billion Quarterly Profit on Paper Bitcoin Gains

MakeCryippreferred on

• Strategy reported Q3 2026 net income of $19.53 billion and diluted earnings per share of $44.75, driven by a $20.91 billion unrealized gain on its digital assets
• The company held approximately 848,517 bitcoin as of October 25, 2026, with an average cost of about $75,446 per bitcoin, against a market value of roughly $68.90 billion
• Chief Financial Officer Andrew Kang will step down effective November 5, 2026, with CEO Phong Le serving as principal financial officer until Reza Virasteh becomes CFO on January 1, 2027

Strategy, the bitcoin treasury company formerly known as MicroStrategy, reported third-quarter 2026 results for the period ended September 30 in an exhibit filed with the SEC on October 29, 2026. Net income came in at $19.53 billion, or $19.12 billion attributable to common stockholders after accounting for $419.6 million in preferred dividends, translating to diluted earnings per share of $44.75.

The overwhelming driver of that figure was a $20.91 billion unrealized gain on digital assets, which pushed operating income to $20.91 billion for the quarter. By contrast, the company’s actual revenue from its legacy software business came in at $125.4 million, down 3 percent from $128.7 million a year earlier, underscoring just how dependent Strategy’s headline financial results have become on the accounting treatment of its bitcoin holdings rather than on any underlying operating business.

As of October 25, 2026, Strategy held approximately 848,517 bitcoin, up slightly from 847,666 at the September 30 quarter-end, with an average cost basis of about $75,446 per bitcoin. At a market price of roughly $81,200 per bitcoin as of October 23, 2026, that stack carried a market value of about $68.90 billion against a cost basis of $64.02 billion. The company’s balance sheet showed $2.50 billion in cash, $77.15 billion in total assets and $8.65 billion in total liabilities as of quarter-end.

Alongside the earnings figures, Strategy disclosed a leadership change: Chief Financial Officer Andrew Kang will step down effective November 5, 2026, remaining available in an advisory capacity through the end of the year. CEO Phong Le will serve as principal financial officer during the transition, overseeing the finance organization, while Reza Virasteh, currently the company’s EVP of Operations, becomes EVP and CFO effective January 1, 2027, serving as co-principal financial officer alongside Le.

The filing also disclosed $5.41 billion in net proceeds raised through the company’s at-the-market equity program during the quarter, part of $21.23 billion raised year-to-date, which funded $14.33 billion of bitcoin purchases over the same period. The full results are filed as an exhibit on SEC EDGAR.