Strategy Reports $2.8 Billion Profit Amid Bitcoin Surge

Strategy Inc. (Nasdaq: MSTR), widely recognized as the world's largest corporate holder of Bitcoin, has announced exceptional financial results for the third quarter of 2025, reporting a substantial net income of $2.8 billion. This impressive performance, alongside a diluted earnings per share of $8.42, underscores the profound impact of its aggressive Bitcoin acquisition strategy and favorable market conditions.

Record-Breaking Profit Driven By Bitcoin Appreciation

The Tysons Corner, Virginia-based company's Q3 financial results, released on Thursday, October 31, 2025, reveal a dramatic financial turnaround. Strategy's operating income soared to $3.9 billion for the quarter, a significant reversal from an operating loss of $432.6 million in the same period last year. This remarkable surge in profitability is primarily attributed to the unrealized appreciation of Strategy's substantial Bitcoin position. A key enabler of this reporting is the implementation of new fair value accounting rules, which took effect in January 2025, allowing the company to reflect these gains more accurately on its balance sheet.

Massive Bitcoin Portfolio Exceeds 640,000 BTC

As of October 26, Strategy's Bitcoin holdings have surged past a staggering 640,808 BTC, with an estimated value of $70.9 billion. The company acquired these holdings at an average cost of $74,032 per bitcoin, culminating in a total cost basis of $47.4 billion. This immense digital asset portfolio highlights Strategy's unwavering commitment to its Bitcoin-centric corporate treasury strategy. The company also reported a "BTC Yield" of 26% and a "BTC $ Gain" of $12.9 billion year-to-date, based on Bitcoin trading around $110,600.

Strategic Capital Raises And Core Business Growth

To fund its expansive Bitcoin strategy, Strategy has demonstrated significant financial agility, raising an impressive $20 billion year-to-date. This capital was secured through a diverse range of instruments, including common stock and multiple classes of preferred shares. Beyond its digital asset ventures, Strategy's core software business also exhibited healthy growth, generating $128.7 million in revenue, marking a 10.9% increase year-over-year. Subscription services were a particular highlight, showing robust growth of 65.4%.

Outlook: A Pioneering Approach To Corporate Finance

Strategy Inc.'s latest financial report solidifies its position as a pioneer in integrating digital assets into corporate finance. The company's ability to leverage Bitcoin's market performance for substantial profit, combined with sustained growth in its traditional software business, presents a compelling model for future corporate treasury management. As the company continues to expand its Bitcoin footprint and capitalize on evolving accounting standards, its financial trajectory remains a keenly watched indicator in both the traditional and cryptocurrency markets.

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