Strategy Posts Q3 Profit, Keeping it on Radar for S&P 500 inclusion.
Yahoo Finance·2025-10-01 11:59

Core Insights - Strategy (MSTR) is expected to report a profit for the second consecutive quarter in Q3, driven by an increase in bitcoin prices, which may qualify the company for potential inclusion in the S&P 500 [1][3] - The estimated net income for MSTR is projected at $2.9 billion, translating to approximately $10 per share, with trailing twelve-month earnings per share (EPS) estimated at $22.80 [2][3] - MSTR meets several criteria for S&P 500 inclusion, including positive latest quarter results, over 50% public float, and average daily trading volume exceeding 250,000 shares [3] Financial Performance - MSTR's earnings for the past four quarters are estimated to be around $22.80 per share, with Q2 and Q3 2025 projected EPS of $32.6 and $10.1, respectively [2] - The analysis includes a deferred tax liability of $970 million, which impacts the net income calculation [2] Dividend Information - Strategy has increased its dividend rate on perpetual preferred stock STRC from 10% to 10.25%, with cash dividends payable on October 31 [4] - The current price of STRC is $97, and the company plans to continue raising the rate to approach its $100 par value [4] Market Reaction - MSTR shares rose by 2.9% in premarket trading, coinciding with a 3% increase in bitcoin prices to $116,700 [5]