Strategy reports $19.5B net income on Bitcoin markup as CFO resigns
Strategy posted a third-quarter net income of $19.53 billion, powered almost entirely by a $20.91 billion unrealized gain on its bitcoin holdings, while approving daily preferred dividend payouts and announcing the resignation of Chief Financial Officer Andrew Kang.
Strategy reported $20.91 billion in operating income and $19.53 billion in net income for the third quarter of 2026, almost entirely driven by a $20.91 billion digital asset gain as bitcoin was marked to fair value. Diluted earnings came in at $44.75 per share, with $19.12 billion going to common stockholders after preferred dividends. In contrast, Strategy's software revenue slipped 3% year over year to $125.4 million, and operations excluding the digital asset gain recorded a loss of about $2.6 million.[1][3][2]
Strategy slowed its bitcoin purchases during the quarter, acquiring 7,218 BTC compared to 85,296 BTC in the second quarter, bringing its total treasury to 848,517 BTC. To fund $239.9 million in preferred dividends and $108.6 million in STRC stock buybacks, Strategy sold 5,552 BTC during the quarter. The company also raised $5.41 billion by issuing common stock. Preferred shareholders approved daily dividend accruals with 99.3% support, scheduled to start for STRC on November 1.[1][3][4]
Alongside the earnings, Strategy announced that Chief Financial Officer Andrew Kang is resigning on November 5 for personal reasons. Strategy CEO Phong Le will assume principal financial officer duties for the remainder of 2026, with Reza Virasteh slated to become CFO in January 2027. Strategy stock dropped following the earnings and departure announcements.[1][6][5]
Key facts
- Strategy posted Q3 2026 net income of $19.53 billion and operating income of $20.91 billion, driven by a $20.91 billion unrealized gain on digital assets.
- Excluding the digital asset gains, Strategy's operations lost approximately $2.6 million in the quarter, with software revenue falling 3% year over year to $125.4 million.
- Strategy held 848,517 BTC as of late October 2026, purchasing 7,218 BTC in Q3 compared to 85,296 BTC in Q2.
- Strategy sold 5,552 BTC during Q3 to fund $239.9 million in preferred dividends and $108.6 million in STRC stock buybacks.
- Strategy raised $5.41 billion through common stock sales during the third quarter.
- Daily preferred dividends for STRC, approved by 99.3% of votes cast, take effect starting November 1.
- CFO Andrew Kang will step down on November 5 for personal reasons, with CEO Phong Le serving as principal financial officer until Reza Virasteh takes over as CFO in January 2027.
Sources · 6 sources
- UN
UnchainedArticle ·
Strategy Sold 5,552 Bitcoin and Bought 7,218 in Q3 as a $20.9 Billion Markup Drove Profit Strategy reported $20.91 billion of operating income for the third quarter on Thursday, all of it from a $20.91 billion gain on digital assets . Strategy carries its bitcoin at fair value, so the gain reflects a higher bitcoin price at quarter end, not cash from its business; excluding it, operations lost about $2.6 million. CFO Andrew Kang called it a “record $20.9 billion of operating income” on the company’s earnings call. For the nine months through Sept. 30, Strategy still showed an operating loss of $1.89 billion , after bitcoin losses in the first and second quarters. Quarterly net income was $19.53 billion; after preferred dividends, $19.12 billion went to common stockholders, or $44.75 a diluted share. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . Buying Slows as Strategy Sells Bitcoin Strategy added 7,218 BTC in the quarter, down from 85,296 in the second, and sold 5,552 BTC to fund $239.9 million of preferred dividends and $108.6 million of STRC repurchases. It raised $5.41 billion selling MSTR common stock. On the call, CEO Phong Le said “the primary way to acquire Bitcoin is by issuing digital credit,” with MSTR issuance coming “perhaps, if the mNAV starts to expand aggressively and we see an opportunity.” He said STRC, which fell below par in late spring and dropped to about $75 at the end of June, closed at $99.99 Thursday after roughly $2 billion of buybacks, with $957 million still authorized. Executive Chairman Michael Saylor called it “a general reasonable expectation that the company will return STRC to par within four months” of any future slip. CFO Transition Kang said on the call he is leaving Nov. 5 “for personal reasons,” which the release did not state. Le serves as principal financial officer for the rest of 2026. From Jan. 1, 2027, Reza Virasteh , executive vice president of operations, becomes CFO and co-principal financial officer alongside Le, the release said. Le described it as a split: Virasteh covering software, and Le the bitcoin business while staying CEO. Daily preferred dividends, approved by 99.3% of votes cast, begin with STRC’s Nov. 1 record date, Kang said. Related Listen: Why Lyn Alden Says Strategy Let Its Dollar Reserve Slip Too Far The post Strategy Sold 5,552 Bitcoin and Bought 7,218 in Q3 as a $20.9 Billion Markup Drove Profit appeared first on Unchained .
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🔥 BIG: Strategy reports record Q3 operating income of $21 billion and diluted earnings of $44.75 per share, driven by gains on its Bitcoin holdings. https://t.co/CQTS5XDqbJ
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: Strategy reported $19.53 billion in net income for Q3, up from $2.79 billion a year earlier, as the rising value of its bitcoin holdings generated a $20.91 billion gain and drove record operating income. The company held 848,517 BTC as of Oct. 25, up 26% year to date, while revenue from its software business fell 3% year over year to $125.4 million. $MSTR Strategy said CFO Andrew Kang will step down on Nov. 5, with current COO Reza Virasteh set to become CFO in January 2027.
Open source - WS
Wall St Engine@wallstenginePost on X ·
STRATEGY $MSTR Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $125.4M (Est. $127.2M) 🔴; -3% YoY 🔹 EPS: $44.75 (Est. $8.17) 🟢; +431% YoY 🔹 Operating Income: $20.91B; +438% YoY 🔹 Net Income: $19.53B; +600% YoY Bitcoin (as of Oct. 25, 2026): 🔹 Holdings: 848,517 BTC; +26% YTD 🔹 BTC Yield: -3.7% YTD 🔹 BTC $ Gain: -$2.03B YTD 🔹 Cost Basis: $64.02B 🔹 Market Value: $68.90B Other Q3 Metrics: 🔹 Gross Margin: 71.0%; +100 bps YoY 🔹 Cash & Equivalents: $2.50B Key Updates: 🔹 Digital Assets: $20.91B unrealized gain in Q3 🔹 Capital Raised: $21.23B YTD 🔹 STRC Repurchases: $2.04B; $956.7M authorization remains 🔹 USD Assets: $5.07B; 3.4 years of coverage 🔹 BTC Sales: $431.8M YTD 🔹 Daily Dividends: STRC Nov. 1; STRF, STRK and STRD Jan. 1 🔹 CFO Transition: Andrew Kang steps down Nov. 5; Reza Virasteh starts Jan. 1 Comments: 🔸 “Daily dividends are a natural step toward the tokenized, 24/7/365 financial system. Digital Credit is being built for that world, and Strategy intends to lead it,”
Open source - CO
CoindeskArticle ·
Strategy CFO Andrew Kang resigns as company posts record operating profit Andrew Kang’s departure comes as Strategy reports $21 billion in quarterly operating income and bitcoin holdings of 848,517 BTC.
Open source - PR
ProtosArticle ·
Strategy insiders sold millions, then the CFO resigned Before Andrew Kang, Strategy’s Chief Financial Officer, announced his resignation on the day of the company’s quarterly earnings announcement, insiders at Michael Saylor’s bitcoin (BTC) company had sold 227,580 shares of MSTR over the course of the year. MSTR, the company’s Nasdaq-listed common stock, is down over 8% today on the combined, bad news. Kang had been offloading shares himself through June , although he and other insiders would deny any connection between these sales and his ultimate decision to depart. “Mr. Kang’s decision to resign is due to personal reasons and not the result of any disagreement between Mr. Kang and the Company on any matter,” Strategy stated in its SEC filing. Nearly $30 million worth of insider selling in 2026 so far Year-to-date insider sales at Strategy (Nasdaq:MSTR), cumulative. Source: SEC Form 4 filings Of any insider over the course of the year, CEO Phong Le has offloaded the most MSTR. Personally, he has sold 104,593 shares worth about $12.5 million. Next up, Strategy Director Jarrod Patten sold 77,900 shares for about $11.4 million. Next is departing CFO Kang, whose resignation is effective as of November 5 , sold 43,897 shares for about $5.5 million. He is leaving the company a multi-millionaire, and the job of inspecting the company’s financial reports will be someone else’s problem. Two other insiders, former Chief Accounting Officer Jeanine Montgomery and General Counsel Thomas Chow, sold about 1,200 shares combined. Their sales are so small on a relative basis that they are practically invisible in Protos’ chart above. Michael Saylor was selling MSTR ahead of S&P 500 decision Read more: Strategy authorizes massive BTC sale after 52-week lows Strategy CFO says resignation ‘not the result of any disagreement’ Kang’s insider sales carried standard boilerplate that he transacted “to satisfy the reporting person’s tax withholding obligation due upon the vesting of previously granted equity awards” under a 2024 trading plan. In other words, Strategy gave him so much equity compensation to sign off on the books and oversee financial matters at the company that he needed to sell millions of dollars worth of MSTR just to plan for his taxes. Indeed, Kang received over $4.1 million in 2023 compensation, $7.8 million for 2024, and $5.7 million for 2025 from Strategy. Kang’s final sale on June 9, 2026, was less than five months before he notified Strategy that he was resigning. MSTR has declined 14% year-to-date alongside heavy shareholder dilution that Strategy has used to fund STRC preferred share buybacks and bitcoin (BTC) purchases. Le, Strategy’s current CEO, takes over as the company’s principal financial officer on November 6. Reza Virasteh is scheduled to become co-CFO in January 2027 alongside Le. Got a tip? Send us an email securely via Protos Leaks . For more informed news and investigations, follow us on X , Bluesky , and Google News , or subscribe to our YouTube channel. The post Strategy insiders sold millions, then the CFO resigned appeared first on Protos .
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