Strategy Inc. (MSTR), under the guidance of Executive Chairman Michael Saylor, has reported a Q3 net income of $2.8 billion, or $8.42 per share, marking a significant turnaround from the $340.2 million loss, or $1.72 per share, in the same quarter last year. This substantial profit was largely fueled by the increase in Bitcoin's price, which rose from $107,000 to $114,000 during the quarter. The company's after-hours stock performance reflected positively on the news, with shares up about 4%.

Strategy's Q3 success is attributed to its strategic investment in Bitcoin. By the end of September 2025, the company expanded its Bitcoin holdings to 640,031. The firm's financial results reflect the new mark-to-market rules for Bitcoin holdings. The company's total Bitcoin holdings were valued at $70.9 billion as of October 26, 2025, acquired at an average cost of $74,032 per Bitcoin.

The company reaffirmed its full-year guidance, projecting a 30% Bitcoin yield and $24 billion in net income, contingent on Bitcoin reaching $150,000 by the end of the year. CEO Phong Le reiterated these goals, emphasizing the company is on track to achieve them. Strategy has raised $20 billion year-to-date through its capital markets platform.

Despite the positive earnings report, Strategy's share price experienced volatility during the quarter, declining 14% during Q3 and an additional 20% in October. The company's mNAV (market value to net asset value) multiple, which compares the company's enterprise value to its Bitcoin holdings, has also decreased to 1.2x, the lowest since March 2023. This decline is attributed to a recent drop in Bitcoin's price.

Beyond Bitcoin, Strategy's software business also contributed to the positive results. Subscription services grew by 65.4% to $46 million, and product licenses and subscription services increased by 62.9% to $63.3 million. Total revenues for the quarter were $128.7 million, an increase from $116.1 million in the previous year.

Looking ahead, investors are keen to learn more about Strategy's plans for its common stock (MSTR) to join the S&P 500 index. They are also awaiting updates on the company's response to S&P analysts' recent Junk rating and potential offerings in foreign markets.