Strategy reported a $20.91 billion gain on its Bitcoin holdings for the third quarter of 2026, producing record operating income and lifting the company’s Bitcoin treasury to 848,517 BTC as of October 25. The October 29 earnings release highlights how strongly the company’s reported profit can move with Bitcoin prices, even as shareholders face dilution and the cost of financing its enormous reserves.

The company reported $19.53 billion in net income, with diluted earnings of $44.75 per share. But the Bitcoin gain is chiefly a change in fair value recognized under accounting rules, rather than $20.91 billion in cash received from selling Bitcoin. Revenue from Strategy’s longstanding software business was $125.4 million, down 3% from a year earlier.

Strategy’s official October 29, 2026 earnings webcast, featuring company executives discussing the quarterly results.

More Bitcoin, but less Bitcoin per diluted share

Strategy increased its Bitcoin holdings 26% year to date, with a reported acquisition cost of $64.02 billion and an estimated market value of $68.90 billion as of its October 25 snapshot. Yet its own BTC Yield metric was negative 3.7% year to date: Bitcoin attributable to each assumed diluted share fell as the company issued securities. It is a reminder that treasury growth and growth in Bitcoin per share are not the same thing.

Strategy also disclosed approximately $431.8 million of Bitcoin sales during 2026 to help fund preferred-stock dividends and repurchases. The company said it held $5.07 billion in dollar-denominated assets, which it estimates can cover about 3.4 years of preferred dividends and debt interest. These reserves offer a liquidity cushion, but do not remove Bitcoin price risk.

The financing strategy draws scrutiny

The company has repurchased roughly $2.04 billion of STRC preferred shares this year while keeping the annualized STRC dividend rate at 12%. Following shareholder approval, STRC moves to daily dividend record dates beginning November 1; three other preferred series are scheduled to follow in January. BitcoinVersus.Tech previously covered the daily dividend proposal and Michael Saylor’s argument for digital credit.

Michael Saylor explains Strategy’s preferred-stock financing in an April 2026 Bitcoin Magazine keynote; archival context, not the October earnings call.

The results follow the announcement of CFO Andrew Kang’s planned departure. Investors now face two distinct questions: how Bitcoin’s market value will affect the next earnings report, and whether future capital raising can increase Bitcoin per share without imposing disproportionate costs on common shareholders.

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