Overview
- Strategy reported diluted EPS of $8.42 as Q3 net income reached $2.8 billion, reflecting Bitcoin’s rise from roughly $107,000 to about $114,000 during the quarter.
- Bitcoin holdings increased to 640,031 BTC by Sept. 30 and to 640,808 BTC after October purchases, following continued accumulation funded largely through equity and preferred offerings.
- Shares fell about 14% in Q3 and another 20% this month before a roughly 3% after-hours rebound following the earnings release, as the stock’s premium to its bitcoin holdings compressed.
- Management reaffirmed full-year guidance for roughly $24 billion in net income and $80 EPS based on a $150,000 year-end Bitcoin price, and restated ATM guidance not to sell common stock when mNAV is below 2.5x, making near-term common issuance unlikely.
- S&P assigned a B- issuer rating with a stable outlook, while broader context includes a 25 bp Fed rate cut and reports of institutional accumulation such as Coinbase increasing its BTC holdings.