MicroStrategy Inc. reported record third-quarter operating income of $20.91 billion on Oct. 29, driven primarily by gains on its bitcoin treasury. The company recognized $20.91 billion in digital asset gains compared with $3.89 billion in the same quarter last year.
Diluted earnings per share reached $44.75, while net income totaled $19.53 billion, including $19.12 billion attributable to common stockholders. Revenue declined 3% to $125.4 million.
Bitcoin Holdings Expand Despite Share Dilution
MicroStrategy's bitcoin treasury expanded to 848,517 BTC as of Oct. 25, representing approximately 4% of bitcoin's maximum supply of 21 million coins. The company spent $14.33 billion on bitcoin purchases year to date, with average acquisition costs of $75,446 per coin.
The treasury cost a total of $64.02 billion. Using the Oct. 23 bitcoin price of $81,200, holdings were valued at $68.90 billion. Year-to-date bitcoin purchases increased the company's holdings by 26%.
MicroStrategy stock rose 76% during the third quarter, compared with bitcoin's 43% advance over the same period.
Preferred Dividends and Leadership Changes
Shareholders approved daily preferred stock dividends on Oct. 28, with accrual beginning Nov. 1 for STRC, a variable-rate perpetual preferred stock. Three fixed-rate perpetual preferreds—STRF, STRK, and STRD—will transition to daily dividends on Jan. 1, 2027.
The company maintained STRC's 12% annual dividend rate and reported dollar assets of $5.07 billion, providing an estimated 3.4 years of coverage for preferred dividends and interest obligations.
Chief Financial Officer Andrew Kang will step down Nov. 5 and remain an adviser through Dec. 31. President and CEO Phong Le will assume finance oversight during the transition. Executive Vice President of Operations Reza Virasteh will become CFO on Jan. 1, 2027, serving alongside Le as co-principal financial officer.
