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Strategy Stock Rises After Q3 Earnings Reveal $2.8B Profit and $20B Bitcoin Gains
Strategy (NASDAQ: MSTR) posted a remarkable turnaround in its third-quarter 2025 earnings, reporting $2.8 billion in net income, compared to a $340 million loss in the same period last year. The results highlight the company’s dominance as the world’s largest corporate Bitcoin holder and underscore the power of its Bitcoin treasury strategy amid the digital asset’s continued appreciation.
Bitcoin Gains Power Record-Breaking Quarter
For the quarter ending September 30, Strategy reported $3.9 billion in operating income and $8.42 in diluted earnings per share (EPS). According to CEO Michael Saylor, the results reflect both operational efficiency and the firm’s strategic exposure to Bitcoin.
As of October 26, 2025, the company held 640,808 BTC, acquired at a total cost of $47.44 billion, or roughly $74,032 per Bitcoin. With Bitcoin currently trading near $107,833, Strategy sits on billions in unrealized gains — a direct contributor to its strong quarterly performance.
Bitcoin Treasury Model Creates a Self-Reinforcing Cycle
Strategy has effectively redefined corporate treasury management by adopting Bitcoin as its primary reserve asset. Rising Bitcoin prices typically drive up Strategy’s stock valuation, allowing the firm to raise capital through equity offerings, which it then reinvests into more Bitcoin. This self-reinforcing feedback loop has inspired other corporations to consider similar strategies as part of their balance sheet diversification.
Accounting Changes Unlock Bitcoin Profit Recognition
New accounting standards have allowed Strategy to recognize Bitcoin gains in its financial statements, rather than only reporting impairment losses. This change has made the company’s reports more reflective of its true economic exposure to Bitcoin, giving investors a clearer picture of its balance sheet value.
Full-Year Outlook and Market Performance
Strategy reaffirmed its 2025 full-year guidance, projecting $34 billion in operating income and $20 billion in Bitcoin gains. Despite Bitcoin’s 14.5% year-to-date rise, Strategy’s stock has dipped about 12% in 2025 — a divergence analysts attribute to valuation concerns and potential capital dilution. However, shares climbed nearly 4% in after-hours trading following the earnings release, signaling continued investor confidence.
Redefining Corporate Treasury Management
Strategy’s success showcases a transformative shift in corporate finance, demonstrating how companies can leverage Bitcoin as a long-term treasury reserve asset. With a favorable regulatory backdrop under President Donald Trump’s pro-crypto stance and robust ETF inflows, Strategy’s model is reshaping how Wall Street values digital asset exposure in corporate portfolios.
By blending Bitcoin economics with traditional corporate structure, Strategy continues to pioneer a new era of financial strategy — one where balance sheets are powered not by cash and bonds, but by digital scarcity.
