Strategy registered the highest operating income in its corporate history on Thursday, reporting $20.91 billion for the third quarter of 2026. The vast majority of that figure was driven by unrealized gains on the firm’s massive bitcoin portfolio.
Net income climbed to $19.53 billion, translating to $44.75 per diluted share, up substantially from $2.79 billion during the same period last year.
Chief Financial Officer Andrew Kang, whose departure was announced simultaneously in the same release, summarized the milestone directly: “Q3 operating income of $21 billion was the largest ever in Strategy’s history.”
Because Strategy adjusts its bitcoin holdings to market value each quarter, price fluctuations directly impact earnings. Bitcoin experienced a strong rally during the quarter, bringing the company’s 848,517 bitcoin to a total valuation of $68.9 billion as of October 23, when the cryptocurrency traded at $81,200. With an average acquisition cost of $75,446, the holding remains comfortably profitable on paper.
Kang highlighted these acquisitions as the primary catalyst for the quarter, noting that the firm “increased our bitcoin holdings by 26% year-to-date in a challenging bitcoin market.”
Meanwhile, total revenue dipped 3% year-over-year to $125.4 million, falling short of analyst predictions of $127.2 million. Gross profit landed at $89.6 million, representing a 71% margin compared to 70% in the prior year. Strategy concluded September holding $2.50 billion in cash alongside $3.40 billion in short-term investments.
Strategy’s bitcoin per share slips
Bitcoin per share—the primary performance metric tracked by management—trended in the opposite direction. The BTC yield fell to a negative 3.7% for the year, indicating that each share currently represents a smaller amount of bitcoin than it did in January. In dollar terms, the bitcoin position reflects a $2.03 billion loss over the same timeframe. To cover preferred dividends and ongoing stock buybacks, the company sold approximately $431.8 million worth of bitcoin over the course of the year.
Overall, Strategy raised $21.23 billion in capital throughout 2026, which included $5.41 billion in net proceeds generated via its at-the-market program during the third quarter alone. A significant portion of these funds was redirected toward repurchasing the company’s preferred stock. Specifically, Strategy bought back 20,980,508 shares of STRC for $2.04 billion, paying an average price of $97.39 per share—a discount relative to the $100 stated value.
Chief Executive Phong Le emphasized that the buyback initiative was designed to stabilize the security: “Strategy demonstrated its commitment to returning STRC to health.” Leadership stated that repurchases will continue as long as STRC trades below par value, with roughly $956.7 million still available under the current authorization.
The company’s dollar reserves now stand at $5.07 billion, comprising a $4.83 billion USD Reserve and $242.4 million in USD Cash. According to Strategy, this financial buffer is sufficient to cover dividend and interest obligations for 3.4 years. To help maintain trading levels near the $100 stated value, the board maintained the STRC dividend rate at 12.00%.
STRC moves to daily dividends
On October 28, shareholders voted to transition to a daily dividend model. STRC payouts will shift to a daily schedule on November 1, with STRF, STRK, and STRD slated to adopt the same schedule on January 1, 2027.
Le described the structural adjustment as a move toward modern financial infrastructure: “Daily dividends are a natural step toward the tokenized, 24/7/365 financial system. Digital Credit is being built for that world, and Strategy intends to lead it.”
Additionally, Strategy anticipates that its preferred distributions will qualify as a non-taxable return of capital for a decade or more, given the absence of positive accumulated earnings and profits. Shareholders are advised to consult their personal tax professionals regarding these matters.
Meanwhile, STRC stock is approaching the $100 threshold. Earlier today, STRC touched $99.99, a milestone that, once par is reached, could unlock fresh funding for additional bitcoin purchases. As noted previously, the adoption of daily dividends was designed to boost liquidity and minimize price volatility. However, Strategy has not yet officially confirmed a timeline for resuming STRC share issuance.
What was Strategy’s operating income in Q3 2026?
Strategy posted a record operating income of $20.91 billion for the third quarter of 2026, largely driven by paper gains on its bitcoin holdings.
How many bitcoin does Strategy hold?
As of October 23, 2026, the company held 848,517 bitcoin.
What is the new dividend schedule for STRC?
Following shareholder approval on October 28, STRC began paying daily dividends starting November 1, 2026.
What is Strategy’s total dollar reserve?
The company’s dollar reserves total $5.07 billion, consisting of a $4.83 billion USD Reserve and $242.4 million in USD Cash.
