Strategy (MSTR), the largest corporate holder of bitcoin, reported net income of $2.8 billion, or earnings per share of $8.42 for the third quarter of 2025.
Led by CEO Michael Saylor, the company continued to execute its aggressive bitcoin accumulation strategy. Buoyed by proceeds from common and preferred stock issuances, Strategy increased its holdings to 640,031 BTC at the end of September from 597,325 at the beginning of the quarter (October purchases have since raised the company’s stack to 640,808).
The third-quarter profit came thanks to an increase in the price of bitcoin from about $107,000 in early July to about $114,000 in late September. However, investors were not so kind to MSTR, which saw a share price drop of around 14% over those three months as the market capitalization premium over the value of its bitcoin holdings fell sharply (the mNAV).
It’s a decline that accelerated during October, with shares falling another 20% this month, including a 7.5% drop today along with bitcoin’s return to below $107,000.
Read more: Michael Saylor’s strategy loses value by $18 billion, but may be close to a rebound: 10X Research
The company’s so-called year-to-date bitcoin return is 26% and the company reiterated its guidance for a full-year bitcoin return of 30% and net income of $24 billion, or $80 per share, based on its $150,000 BTC price outlook.
The strategy also re-included common stock ATM guidance in which it promised not to sell common stock when mNAV falls below 2.5x. The company had this guidance earlier this year, but later withdrew it, causing some consternation among shareholders.
The recent sharp drop in MSTR’s share price relative to bitcoin has left its mNAV just above 1, meaning issuance of common shares is likely off the table for the foreseeable future.
Shares rose 3.3% in after-hours trading and the earnings call began at 5 p.m. ET.
