Strategy Reports $2.8B Q3 Profit, Bitcoin Treasury Model Gains Momentum

Core Insights - Strategy reported a net income of $2.8 billion for Q3 2025, a significant recovery from a $340 million loss in the same quarter last year [1][2] - The company reaffirmed its full-year guidance of $34 billion in operating income and $20 billion in Bitcoin gains, maintaining its status as the largest corporate Bitcoin holder [1][7] Financial Performance - For the three months ending September 30, Strategy achieved a net income of $2.78 billion, or $8.42 per share, compared to a loss of $340.2 million, or $1.72 per share, in the previous year [2] - Operating income for the quarter was reported at $3.9 billion [2] - As of October 26, 2025, the company held 640,808 bitcoins, acquired at a total cost of $47.44 billion, equating to $74,032 per bitcoin, with current trading around $107,833, indicating substantial unrealized gains [2] Business Model - Strategy has evolved into a "Bitcoin treasury company," primarily holding Bitcoin as its treasury reserve asset, which has transformed market valuation [3] - The rising Bitcoin prices positively impact Strategy's stock price, allowing for additional capital raising through equity offerings, which is then reinvested into Bitcoin purchases, creating a self-reinforcing cycle [4] Accounting Changes - Recent accounting changes now allow Strategy to recognize gains from Bitcoin appreciation, which were previously unrealized unless sold [5][6] - This shift has improved the transparency of the company's financial statements, reflecting the market value of its Bitcoin holdings [6] Future Outlook - The company remains committed to its strategy without plans to hedge its Bitcoin position, reaffirming its full-year 2025 guidance [7]