Finance

Strategy’s $2.8 Billion Bitcoin Profit: How the Company’s Bold Strategy Outperformed the Market

Strategy reported $2.8B profit in Q3, increasing its Bitcoin holdings to become the largest corporate holder.

October 30, 2025, 6:46 PM

Close-up of Bitcoin coins with the MicroStrategy logo shown on a vibrant orange screen. By Bangla press / Shutterstock.com.

Executive Summary

Strategy reported $2.8 billion in Q3 profits and continued its aggressive Bitcoin accumulation, holding over 640,000 BTC and maintaining its position as the largest corporate holder despite a subdued Bitcoin market.

MSTR shares gained over 3% after-hours following the Q3 report, though they had plunged over 7% during regular trading and have seen a steady decline over the last three months, despite a 1,400% surge since its 2020 Bitcoin pivot.

The company reaffirmed bullish full-year guidance, projecting $24 billion in net income based on Bitcoin reaching $150,000, and shifted its capital-raising strategy from common shares to preferred share types for Bitcoin acquisitions.

The Story So Far

Strategy is a prominent Bitcoin treasury company that initiated an aggressive Bitcoin accumulation strategy in 2020, becoming the largest corporate holder of the cryptocurrency, driven by co-founder Michael Saylor’s consistently bullish long-term outlook on Bitcoin’s price appreciation, which underpins its financial performance and ongoing acquisition decisions despite market fluctuations.

Why This Matters

Strategy’s continued profitability and aggressive Bitcoin accumulation, despite a subdued market, underscore its significant influence as the largest corporate holder, potentially encouraging further institutional adoption of Bitcoin as a treasury asset. This steadfast approach, coupled with a strategic shift in funding methods from common to preferred shares, indicates a maturing corporate strategy for digital asset integration. Moreover, the company’s reaffirmed bullish outlook on Bitcoin’s future price, even amid volatility, provides a strong sentiment signal for the broader market.

Who Thinks What?

Strategy, through co-founder Michael Saylor, maintains a bullish stance on Bitcoin, continuing its aggressive accumulation strategy and projecting the cryptocurrency to reach $150,000 by year-end, reflecting a long-term vision despite market fluctuations.

Wall Street Journal consensus estimates indicated higher expectations for Strategy’s financial performance, as the company’s Q3 diluted EPS of $8.42 fell significantly short of their $551.53 estimate.

The market reaction to Strategy’s Q3 results was mixed, with MSTR shares plunging over 7% during regular trading hours but subsequently gaining more than 3% in after-hours trading.

Strategy, a leading Bitcoin treasury company, announced $2.8 billion in profits for its third quarter, despite a more subdued performance for Bitcoin itself during the period. The company continued its aggressive Bitcoin accumulation strategy, including a recent $43 million purchase, reinforcing its position as the largest corporate holder of the cryptocurrency.

Q3 Financial Performance

The Tysons Corner, Virginia-based firm reported a net income of $8.42 per common share on a diluted basis. Following the announcement, MSTR shares saw a more than 3% gain in after-hours trading, reaching approximately $262, though they had plunged over 7% during regular trading hours.

While the company’s stock has surged over 1,400% since its pivot to Bitcoin in 2020, its price has seen a steady decline over the last three months, falling short of Wall Street Journal consensus estimates of $551.53. Revenues from the firm’s software business totaled $128 million.

Bitcoin Accumulation and Market Context

Bitcoin’s price experienced a modest increase of over 6% in Q3, a significant slowdown compared to its 30% spike in the previous quarter. Despite this, Strategy continued to acquire BTC, albeit at a reduced pace as the quarter progressed.

By the end of Q3, the company held more than 640,000 Bitcoin, currently valued at roughly $68 billion. Strategy remains the world’s largest corporate crypto treasury and a pioneer of the strategy adopted by over 200 other publicly traded firms.

Outlook and Funding Strategy

Strategy reaffirmed its full-year guidance, projecting a net income of $24 billion and diluted EPS of $80 per share, based on an assumption that Bitcoin reaches $150,000 by year’s end. This follows a record $10 billion in net income generated in the previous quarter.

Co-founder Michael Saylor has maintained a bullish stance on Bitcoin, stating in a recent interview that he expects the price to “grind up” to $150,000 by the close of the year, even as Bitcoin dipped below $107,000 on Thursday amid broader market uncertainties.

Last week, Strategy spent $43 million to acquire 390 Bitcoin, marking its largest purchase of the digital asset in nearly a month. The company has shifted its capital-raising approach in recent weeks, opting not to issue common shares since approximately September 29.

Historically, Strategy has issued common shares at a premium to fund its growing Bitcoin stockpile. Instead, the company has introduced various preferred share types this year to finance its Bitcoin acquisitions, some of which involve quarterly dividend payments. This change in funding strategy coincided with smaller Bitcoin purchases in recent weeks, totaling 196 BTC, 219 BTC, and 390 BTC, which are among the company’s smallest acquisitions this year.

Key Takeaways

Strategy’s third-quarter results underscore its continued profitability and unwavering commitment to Bitcoin, despite fluctuating market conditions and a moderated pace of accumulation. The company’s strategic financial maneuvers and optimistic outlook from its leadership highlight its long-term vision for Bitcoin integration.