Strategy posted record operating income of $20.91 billion in the third quarter of 2026, with the majority of the figure coming from gains on the company's bitcoin holdings. Net income reached $19.53 billion, or $44.75 per diluted share, compared to $2.79 billion a year earlier.
The company marks its bitcoin to market each quarter, meaning price movements directly flow into earnings. Strategy held 848,517 bitcoin valued at $68.9 billion as of October 23, when bitcoin traded at $81,200. The average cost basis of the holdings is $75,446.
Strategy increased its bitcoin holdings by 26% year-to-date, according to Chief Financial Officer Andrew Kang, who announced his departure in the earnings release. Total revenue declined 3% to $125.4 million, falling short of analyst estimates of $127.2 million, while gross profit reached $89.6 million.
Bitcoin per Share Declines
Despite record operating income, Strategy's bitcoin per share metric moved in the opposite direction, declining 3.7% year-to-date. The company sold approximately $431.8 million in bitcoin during 2026 to fund preferred dividends and stock buybacks.
Strategy raised $21.23 billion in capital during 2026, including $5.41 billion from its at-the-market program in the third quarter alone. The company repurchased 20,980,508 shares of STRC for $2.04 billion at an average price of $97.39 per share.
Daily Dividends and Share Repurchases
Shareholders approved a shift to daily dividends on October 28, with STRC beginning daily distributions on November 1. STRF, STRK, and STRD will move to daily dividends on January 1, 2027.
Strategy maintains $5.07 billion in dollar reserves, comprised of a $4.83 billion USD Reserve and $242.4 million in USD Cash. Management stated this cushion covers 3.4 years of dividend and interest obligations. The board maintained the STRC dividend rate at 12.00%.
The company intends to continue share repurchases while STRC trades below its $100 stated par value, with approximately $956.7 million remaining under the current authorization.
