Particle.news
Download on the App Store

Strategy Posts $2.8 Billion Q3 Profit on Bitcoin Gains, Pivots Funding to Preferreds

A compressed market premium to its Bitcoin holdings is steering the company away from common-stock issuance toward new credit channels.

Overview

  • Diluted EPS was $8.42, topping estimates, with legacy software revenue of $128.7 million for the quarter.
  • The firm added roughly 42,700 BTC in Q3 and held about 640,808 BTC by late October, including a recent $43 million purchase of 390 BTC.
  • Shares fell roughly 14% in Q3 and about 20% in October before a modest after-hours bounce, as the mNAV multiple narrowed to near 1.0x.
  • Management is leaning on preferred equity and exploring credit securities in international jurisdictions, with the STRC preferred yield lifted to 10.5% starting in November.
  • Full-year guidance was reaffirmed for $24 billion in net income and $80 EPS, targeting a 30% Bitcoin yield assuming a year-end BTC price of $150,000.