Strategy Posted EPS of $8.42 in Q3 Driven by Mark-to-Market Gains on Bitcoin

Core Insights - Strategy (MSTR), the largest corporate holder of bitcoin, reported a net income of $2.8 billion, or EPS of $8.42 for Q3 2025, driven by its aggressive bitcoin accumulation strategy [1] - The company's bitcoin holdings increased to 640,031 BTC by the end of September from 597,325 at the beginning of the quarter, with further purchases in October raising the total to 640,808 BTC [1] - The profit for Q3 was attributed to a rise in bitcoin price from approximately $107,000 at the beginning of July to about $114,000 at the end of September [2] - Despite the profit, MSTR's share price declined by about 14% over the three months due to a sharp fall in market cap premium over the value of its bitcoin holdings [2] - In October, MSTR shares experienced a further decline of 20%, including a 7.5% drop on a day when bitcoin fell below $107,000 [3] Financial Performance - The company's year-to-date bitcoin yield is 26%, with guidance for a full-year bitcoin yield of 30% and a projected net income of $24 billion, or $80 per share, based on a bitcoin price outlook of $150,000 [4] - MSTR has re-included common stock ATM guidance, promising not to sell common shares when the market net asset value (mNAV) falls below 2.5x [5] - The recent decline in share price relative to bitcoin has left MSTR's mNAV barely above 1, indicating that common stock issuance is likely off the table for the foreseeable future [5]