Strategy (MSTR) Stock Gains as Company Posts $2.8 Billion Q3 Profit

TLDR

• Strategy reported Q3 net income of $2.8 billion with diluted earnings per share of $8.42, beating analyst expectations of $8.15
• The company added 42,706 Bitcoin during the quarter, bringing total holdings to 640,031 BTC by September 30
• Strategy’s mNAV dropped to 1.05x from a November 2024 peak of 3.89x as both Bitcoin and MSTR shares struggled
• Shares rose 5.7% after hours to over $269 despite closing down 7.5% at a six-month low of $254.57
• The company reaffirmed full-year guidance of 30% Bitcoin yield and $24 billion net income based on Bitcoin reaching $150,000

Strategy reported third quarter earnings that beat Wall Street expectations on Thursday. The Bitcoin treasury company posted net income of $2.8 billion and diluted earnings per share of $8.42.

Analysts had expected earnings of $8.15 per share. The results sent shares up 5.7% in after-hours trading to over $269.

The Q3 profit represented a massive turnaround from the $340.2 million loss Strategy posted in the same quarter last year. However, it marked a decline from the company’s record $10 billion net income in Q2 2025.

Regular trading hours told a different story. Shares closed down over 7.5% at $254.57, marking a six-month low for the stock.

Executive Chairman Michael Saylor’s company continued its aggressive Bitcoin buying strategy throughout the quarter. Strategy increased its holdings to 640,031 BTC by September 30, up from 597,325 at the start of July.

The company has since added more Bitcoin. As of Sunday, Strategy held 640,808 BTC with an average purchase price of $74,032 per coin.

Bitcoin Price Drives Quarterly Results

Bitcoin’s price movement during the quarter helped boost Strategy’s reported profits. The cryptocurrency rose from roughly $107,000 at the beginning of July to about $114,000 by September 30.

That’s a gain of over 6.5% for the three-month period. Bitcoin currently trades around $108,500 after falling to an intraday low under $106,500.

The price action hasn’t been kind to Strategy’s stock price. Shares fell about 14% during the third quarter even as Bitcoin posted gains.

MicroStrategy Incorporated, MSTR

October proved even worse for the stock. Strategy shares plunged another 20% this month as Bitcoin remained range-bound around $110,000.

Company’s mNAV Hits Lowest Level Since 2023

The divergence between Strategy’s stock price and its Bitcoin holdings has crushed the company’s multiple net asset value. The mNAV currently sits at 1.05x, according to StrategyTracker data.

This represents a dramatic fall from the November 2024 peak of 3.89x. Bitcoin rocketed higher following Donald Trump’s US election victory, pushing the mNAV to record levels.

The current mNAV stands at its lowest point since early 2023. The metric measures how much premium the market assigns to Strategy shares above the value of its Bitcoin holdings.

At just 1.05x, the market is valuing Strategy at barely more than its underlying Bitcoin. This effectively takes common stock issuance off the table for now.

Strategy reinstated guidance promising not to sell common shares when the mNAV falls below 2.5x. The company had previously withdrawn this guidance earlier in the year, causing concern among shareholders.

Strategy holds the largest Bitcoin stockpile among public companies. The company’s Bitcoin yield hit 26% year-to-date, representing a $13 billion gain.

The company reaffirmed its full-year outlook. Strategy expects to hit 30% Bitcoin yield with net income of $24 billion, or $80 per share.

That guidance assumes Bitcoin will reach $150,000 by year-end. The cryptocurrency would need to rally over 38% from current levels to hit that target.

Strategy funded its Bitcoin purchases through common and preferred stock issuances during the quarter. The low mNAV means the company will likely rely more heavily on preferred stock and debt going forward.

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