Strategy Posts $20.9B Q3 Operating Gain via Bitcoin Markup as CFO Kang Resigns

Strategy recorded $20.91 billion in third-quarter operating income on Thursday, driven entirely by a fair-value markup on its digital asset holdings ¹. Excluding the $20.91 billion gain, the firm registered an operating loss of approximately $2.6 million ¹. Due to digital asset losses booked during the first and second quarters, Strategy reported a net operating loss of $1.89 billion for the nine months ending Sept. 30 ¹. Quarterly net income stood at $19.53 billion, yielding $19.12 billion for common shareholders, or $44.75 per diluted share after preferred dividends ¹. At the time of writing, $BTC traded at $77,335, down 3.4% over 24 hours.

Treasury accumulation decelerated sharply during the quarter ¹. Strategy added 7,218 BTC, dropping from 85,296 BTC purchased during the second quarter, while selling 5,552 BTC ¹. Proceeds from asset sales covered $239.9 million in preferred dividends and $108.6 million in STRC share repurchases ¹. The firm also generated $5.41 billion by issuing MSTR common stock ¹. The shift in cadence contrasts with earlier aggressive accumulation highlighted when corporate treasuries expand crypto holdings across the market. CEO Phong Le stated that future acquisitions will rely primarily on digital credit issuances, with common share offerings reserved for periods of aggressive net asset value expansion ¹. Following roughly $2 billion in repurchases, STRC closed at $99.99 on Thursday after dropping to around $75 in late June, leaving $957 million in authorized buybacks ¹. Executive Chairman Michael Saylor stated that management generally expects to restore STRC to par value within four months of any dislocation ¹.

Leadership Realignment and Dividend Structure

Chief Financial Officer Andrew Kang announced he will depart on Nov. 5 for personal reasons ¹. CEO Phong Le will assume principal financial officer duties through the remainder of 2026 ¹. Beginning Jan. 1, 2027, Executive Vice President of Operations Reza Virasteh will step in as CFO and co-principal financial officer alongside Le ¹. Under this leadership division, Virasteh will manage the software unit while Le oversees treasury operations alongside his executive role ¹. Daily preferred dividends, which received 99.3% approval in a shareholder vote, commence on the Nov. 1 record date for STRC ¹.