Strategy, formerly MicroStrategy and the largest corporate Bitcoin holder, announced a record $21 billion third-quarter operating profit on Thursday. Unrealized appreciation of Strategy's Bitcoin accounted for the entire operating profit. However, Strategy's Bitcoin per share declined 3.7% this year while total Bitcoin holdings increased 26%. Strategy asks investors to assess the company using Bitcoin per share, and each share now represents less Bitcoin than in January.
US accounting rules require companies to recognize quarterly cryptocurrency price changes as profit or loss, even without a sale. Bitcoin's rise during the quarter generated a $20.91 billion gain for Strategy. Strategy recorded net income of $19.53 billion, equivalent to $44.75 per share. Falling prices had produced an $8.22 billion quarterly loss under the same rules, as reported in July. Bitcoin per share at that point remained 4.5% higher for the year.
Strategy's earnings release shows the company raised $21.23 billion in 2026, primarily by issuing shares. The release also shows Strategy sold $431.8 million of Bitcoin to help finance dividend payments and share repurchases. Issuing shares increases Bitcoin per share only if the shares sell above the value of the Bitcoin backing those shares. Strategy's stock currently trades below the value of the Bitcoin backing the stock.
Strategy spent $2.04 billion this year repurchasing STRC, a preferred stock that raises cash in exchange for monthly dividends. Strategy also accumulated a $5.07 billion cash reserve, enough for 3.4 years of preferred dividends and interest. Strategy's weekly Bitcoin purchases declined 84% over two weeks earlier this month as STRC repurchases took precedence. CEO Phong Le said in the release, "Strategy demonstrated its commitment to returning STRC to health."
Chief Financial Officer Andrew Kang will depart on November 5. Operations chief Reza Virasteh will take over on January 1. Strategy shares ended regular trading before the results at $141.62, a 2.4% decline. Strategy shares subsequently lost another 0.8% in after-hours trading. Bitcoin traded around $90,600 on Thursday evening.
Strategy says the company aims to lead a market described as digital credit. Strategy's preferred stocks will pay dividends daily starting November 1. The decline in Bitcoin per share illustrates the cost of financing that business when Strategy shares trade below the value of the Bitcoin backing those shares.