A $20.91 billion fair-value gain on Bitcoin (BTC) drove Strategy Inc to $19.53 billion in third-quarter net income even as revenue fell 3% year over year, underscoring how changes in its holdings shaped reported results.
The gain was recorded in operating income, which totaled $20.91 billion, compared with $3.89 billion a year earlier. Under its stated accounting policy, Strategy records changes in Bitcoin’s fair value in the period’s net income. Under that treatment, movements in the value of Strategy's holdings can affect earnings apart from revenue generated during the quarter. The net-income figure includes the digital-asset gain; revenue is reported separately as sales. Net income attributable to common stockholders was $19.12 billion after $419.6 million in preferred-stock dividends. A year earlier, those figures were $2.65 billion and $139.9 million, respectively.
Revenue was $125.4 million, down from $128.7 million, while gross profit slipped to $89.6 million from $90.7 million. Gross margin rose to 71% from 70% despite the declines in revenue and gross profit. As of Sept. 30, Strategy reported $2.50 billion in cash and cash equivalents and $3.40 billion in short-term investments.
Andrew Kang is scheduled to leave his executive vice president and chief financial officer roles on Nov. 5 and remain with Strategy as an adviser through Dec. 31. Chief Executive Phong Le will oversee the finance organization and serve as principal financial officer during the transition. Reza Virasteh, currently Strategy's executive vice president of operations, is scheduled to become CFO on Jan. 1, 2027, serving as co-principal financial officer with Le. Kang characterized the roughly $21 billion in operating income as the largest in Strategy's history.
