Strategy Posts $19.5 Billion Third Quarter Profit on Bitcoin Gains as Preferred Dividends Go Daily

Strategy reported third quarter net income of $19.53 billion, compared with $2.79 billion a year earlier. A $20.91 billion gain on its bitcoin drove the result and pushed operating income to a record. The company held 848,517 BTC as of Oct. 25, up 26% since the start of the year, bought at an average price of about $75,446. Part of the profit came from writing back a roughly $4.1 billion tax asset it had cut in June. Software revenue slipped 3% to $125.4 million, and MSTR shares fell about 3.5% in after hours trading.

Preferred Shareholders Approve Daily Dividends

Holders of STRC, STRF, STRK and STRD preferred shares approved a change that lets dividends build up every day, with 99.3% of votes in favor. STRC’s first record date is Nov. 1, with payment on Nov. 2. The other three follow with a Jan. 1 record date and a Jan. 4 payment. After that, every calendar day becomes a record date and payment comes the next business day. CEO Phong Le called the move a step toward a tokenized financial system that runs around the clock.

Saylor Calls It the Start of the Next Bull Market

Executive Chairman Michael Saylor said banks are embracing bitcoin, its dominance is growing and institutional demand has returned, noting the price sits 21% above its 200 week moving average. He said the company’s Digital Credit products now total $16 billion in notional value across ten listed securities. Strategy also said it spent $2.04 billion on STRC repurchases, which it says brought the security back to health. Bitcoin hovers near $77,000 after the Binance hack, only slightly above Strategy’s average cost.