Bitcoin Magazine

Strategy (MSTR) Posts Record Operating Income as Bitcoin Rebounds in Q3 2026

Strategy posted the largest operating income in its history on Thursday, booking $20.91 billion for the third quarter of 2026. Most of that total came from a paper gain on the company’s bitcoin stack. 

Net income reached $19.53 billion, or $44.75 per diluted share, up from $2.79 billion a year earlier. 

Chief Financial Officer Andrew Kang, who announced his departure in the same release, framed the result plainly: “Q3 operating income of $21 billion was the largest ever in Strategy’s history.”

Strategy marks its bitcoin to market each quarter, so every price move flows into earnings. Bitcoin rallied during the period. The company’s 848,517 bitcoin were worth $68.9 billion as of October 23, when the token traded at $81,200. The holdings carry an average cost of $75,446, which leaves the position in the black on paper. 

Kang pointed to the purchases as the engine of the quarter, saying the company “increased our bitcoin holdings by 26% year-to-date in a challenging bitcoin market.”

Total revenue fell 3%from a year ago to $125.4 million, below analyst estimates of $127.2 million. Gross profit came in at $89.6 million, a 71% margin compared with 70% a year earlier. The company ended September with $2.50 billion in cash and equivalents and $3.40 billion in short-term investments.

Strategy’s bitcoin per share slips

Bitcoin per share, the metric management uses as its main yardstick, moved the other way. The BTC yield stands at negative 3.7% for the year, meaning each share holds less bitcoin than it did in January. Measured in dollars, the bitcoin position shows a $2.03 billion loss over the same period. To fund preferred dividends and stock buybacks, the company has sold roughly $431.8 million of bitcoin this year, a figure the release puts at approximately that amount.

Strategy raised $21.23 billion of capital in 2026, including $5.41 billion in net proceeds from its at-the-market program during the third quarter alone. The company then spent a large part of that money on its own preferred stock. It repurchased 20,980,508 shares of STRC for $2.04 billion at an average of $97.39 per share, a discount to the $100 stated amount.

Chief Executive Phong Le said the buyback program was meant to put the security on firmer footing: “Strategy demonstrated its commitment to returning STRC to health.” Management said it intends to keep buying while STRC trades below par, and about $956.7 million remains under the authorization.

The company’s dollar reserves now total $5.07 billion, made up of a $4.83 billion USD Reserve and $242.4 million of USD Cash. Strategy says that cushion covers 3.4 years of dividend and interest obligations. The board kept the STRC dividend rate at 12.00% to support trading near the $100 stated amount.

STRC moves to daily dividends

Shareholders approved a move to daily dividends on October 28. STRC begins paying daily on November 1, and STRF, STRK, and STRD follow on January 1, 2027. 

Le framed the change as a step toward a different kind of market: “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.” 

Strategy also expects its preferred distributions to count as a non-taxable return of capital for ten years or more, because it does not expect positive accumulated earnings and profits. Shareholders should consult their own tax advisers.

That said, Strategy’s STRC stock is nearing $100. Earlier today, STRC reached $99.99 which once par would reopen funding for Bitcoin purchases. As mentioned ealier, shareholders approved daily dividends to improve liquidity and reduce price volatility. That said, Strategy has not yet confirmed a restart of STRC share issuance.

This post Strategy (MSTR) Posts Record Operating Income as Bitcoin Rebounds in Q3 2026 first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Strategy (MSTR) Shareholders Approve Daily Dividends on Four Preferred Stocks

Strategy shareholders have approved the Daily Dividends amendment, the company announced Wednesday. Preliminary results show 99.3% of votes cast were in favor, according to Executive Chairman Michael Saylor.

The amendment allows STRF, STRC, STRK and STRD to accrue dividends every calendar day, including weekends and holidays.

The proposal surfaced on September 25, when the company asked holders to attend a special meeting on October 28. Strategy said the change “would reduce reinvestment lag, enhance liquidity and market efficiency, and increase price stability.”

At the time Strategy said that they “believe these enhancements can also benefit our common stockholders by increasing the attractiveness and utility of our Digital Credit instruments, supporting our ability to access preferred equity capital efficiently and expanding the capital markets toolkit we use to execute our Bitcoin Treasury strategy.

Under the approved structure, dividends accrue every day but are paid on the next business day. Strategy has said scheduled dividend rates and total dividend obligations remain unchanged. The company has argued the change could benefit common stockholders by making its Digital Credit instruments easier to use and easier to fund.

The timing depends on board action. If the board approves the change and required filings are completed, the first STRC record and payment dates would fall on November 1 and 2, 2026. For STRF, STRK and STRD, the first record and payment dates would be January 1 and 4, 2027. Those dates also depend on operational readiness.

STRC pays a variable rate that the company can change at its discretion. Its rate for the month ended June 30, 2026 was 11.50%, according to Strategy’s quarterly report. Shareholders approved moving STRC to semi-monthly payments in June, and the new amendment builds on that precedent.

In short, STRC is designed to help Strategy raise money from investors through a preferred stock offering targeting a stable $100 price and a variable dividend yield, then use that capital to continuously buy Bitcoin regardless of its short-term price movements. This creates a potential global dollar-cost-averaging machine for Bitcoin.

Final vote certification will come in a company filing. Board action remains the final step before any new payment schedule begins.

Strategy’s bitcoin moves this year 

The vote comes after bitcoin fell into somewhat of a bear market. Strategy slowed its bitcoin purchases this year and sold some holdings to fund preferred dividends, interest payments and repurchases. 

The company’s common stock, MSTR, is down near 50% over the past year, though it has risen by a figure approaching 1,000% since Strategy began buying bitcoin in 2020.

Earlier this week, Strategy said they paused Bitcoin purchases for the prior week and maintained its holdings at 848,517 BTC, acquired for $64.02 billion at an average price of $75,446 per Bitcoin. 

The company spent $204.9 million repurchasing STRC preferred stock while retaining a $4.83 billion cash reserve. 

Fellow bitcoin-treasury company Strive pays cash dividends on its Variable Rate Series A Perpetual Preferred Stock (SATA) every business day. This started on June 16, after moving from monthly payments. 

This post Strategy (MSTR) Shareholders Approve Daily Dividends on Four Preferred Stocks first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Strategy (MSTR) Pauses Bitcoin Buying and Spends $205 Million on Preferred Stock

Strategy reported no bitcoin purchases or sales during the week of October 19 through 25. The company continues to hold 848,517 BTC, acquired for $64.02 billion at an average price of $75,446 per bitcoin. 

Its cash went toward repurchasing $204.9 million of STRC preferred stock, and the firm kept a $4.83 billion cash reserve, according to a company release. 

Michael Saylor’s company built its treasury into the largest corporate bitcoin holdings in the world through stock sales and convertible debt, using the proceeds to buy coins. That pattern has changed somewhat this year. The company has paused purchases several times and directed money toward buybacks of its preferred shares.

The company has had stints of pauses, from a week when the company halted its bitcoin buys to a stretch in which it sold bitcoin after five weeks without buying.

In September, the company repurchased $176 million of STRC in one week and expanded its digital credit securities repurchase program from $1 billion to $2 billion.

Strategy’s preferred dividend

STRC is a preferred stock with a variable dividend, designed to trade near its $100 face value. When the shares fall below that level, as they have during recent market swings, buying them back shrinks the preferred claim. Retiring $100 of stated value for $86.52 cuts the claim by a larger amount than the cash spent, which lifts net bitcoin per share.

Bitcoin traded near $80,000 on Monday, October 26, after slipping below that level in early Asian hours. A weekend selloff pushed the price to the low $79,000’s, a level not seen in over a month.

Strategy’s average cost of $75,446 sits below that price, so the company’s holdings show a paper gain of around $3.9 billion. The $4.83 billion reserve covers preferred dividends and debt interest, according to company reporting. 

Strategy’s buyback capacity depends on preferred stock trading below par and on cash from common stock sales, a funding mix that has shifted toward stock sales this year. 

The company has offered no timetable for resuming bitcoin buys.

This post Strategy (MSTR) Pauses Bitcoin Buying and Spends $205 Million on Preferred Stock first appeared on Bitcoin Magazine and is written by Micah Zimmerman.