Strategy reports $19.5 billion in Q3 net income as preferred shareholders approve daily dividends

Strategy (MSTR) reported $19.53 billion in net income for the third quarter, up from $2.79 billion a year earlier, as the rising value of its bitcoin holdings generated a $20.91 billion gain and drove record operating income.

The company held 848,517 bitcoin as of Oct. 25, up 26% year to date, while revenue from its software business fell 3% year over year to $125.4 million.

Strategy said CFO Andrew Kang will step down on Nov. 5, with current COO Reza Virasteh set to become CFO in January 2027.

"We're at the beginning of the next bitcoin bull market," Executive Chairman Michael Saylor said in a release. "Banks are embracing bitcoin, bitcoin's dominance among digital assets is growing, institutional demand is back, and bitcoin price is 21% above its 200-week moving average. Digital Credit continues to grow, with $16 billion in notional value across ten publicly listed securities."

MSTR shares fell about 3.5% in after-hours trading.

The firm said STRC "returned to health" by executing $2.04 billion of repurchases.

Earlier this week, holders of Strategy's STRC, STRF, STRK and STRD preferred shares approved a change allowing dividends to accrue daily, rather than on the previous schedule. The amendment received 99.3% of votes cast, according to results shared by Saylor.

STRC's first record date will be Nov. 1, with payment on Nov. 2, while STRF, STRK, and STRD will follow with a Jan. 1 record date and Jan. 4 payment. After that, every calendar day will be a record date, with payment on the next business day.

"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," CEO Phong Le said Thursday.

That change comes as the leading bitcoin treasury company leans on preferred-stock offerings to fund BTC purchases. K33 estimated earlier this month that STRC had added $725 million to the company's annual dividend obligations.