Overview
- The company recorded about $19.5 billion in third-quarter net income that mainly came from an approximately $20.9 billion unrealized gain on its bitcoin holdings.
- Strategy disclosed it holds 848,517 BTC at an average cost of $75,446 per coin and marks that position to market each quarter so valuation changes flow straight through reported earnings.
- Bitcoin-per-share fell roughly 3.7% because the company’s share count grew faster than its bitcoin stash even as total BTC holdings rose about 26% year to date.
- Operating revenue and cash results were small by comparison, with quarterly revenue near $125 million and the firm selling some bitcoin this year to fund preferred dividends and repurchases.
- Investors are focused on bitcoin price swings, further share dilution and financing moves because those factors, not core software performance, will drive future reported profits and stock volatility.