Strategy Books $19.5 Billion Profit on Bitcoin Gains as CFO Andrew Kang Steps Down

Strategy, the largest corporate holder of bitcoin, reported record third-quarter operating income of $20.91 billion, driven almost entirely by a $20.91 billion gain on its digital assets, and said Chief Financial Officer Andrew Kang will step down next week, according to the earnings release and 8-K it filed on Thursday.

Net income reached $19.53 billion, or $44.75 a diluted share, compared with $2.79 billion, or $8.42 a share, a year earlier. Net income attributable to common stockholders was $19.12 billion after $419.6 million of preferred stock dividends.

The underlying software business was roughly flat. Total revenue fell 3% to $125.4 million from $128.7 million, and gross profit was $89.6 million, a 71% gross margin.

Bitcoin stack keeps growing

As of Oct. 25, Strategy held about 848,517 bitcoins, up 26% so far in 2026, with an original cost basis of $64.02 billion and a market value of $68.90 billion. That works out to an average cost of about $75,446 per bitcoin against a market price of about $81,200 as of Oct. 23, the company said.

Strategy has bought $14.33 billion of bitcoin and raised $21.23 billion of capital so far this year. Its at-the-market program generated net proceeds of about $5.41 billion in the third quarter, all from common stock sales. Even so, the company's own BTC Yield metric stood at negative 3.7% for the year to date.

The company also said it has sold about $431.8 million of bitcoin this year to help fund preferred dividends and buybacks of its STRC preferred stock.

Shoring up STRC

Management focused much of the release on STRC, its variable-rate preferred stock. Strategy said it has repurchased 20,980,508 STRC shares this year for about $2.04 billion, at an average price of $97.39, and has about $956.7 million left under its $3.0 billion repurchase program. It has kept the STRC dividend rate at 12.00%.

"Strategy demonstrated its commitment to returning STRC to health," CEO Phong Le said in the release, adding that the company grew its USD Assets to $5.1 billion. Strategy said those reserves represent about 3.4 years of coverage for preferred dividends and interest.

No shares have been repurchased under its separate $1.0 billion program for MSTR common stock.

Daily dividends approved

In a separate 8-K filed Thursday, Strategy said stockholders at an Oct. 28 special meeting approved amended certificates of designations allowing daily dividends on its four preferred series. The proposal passed with 381,373,199 votes for and 2,236,551 against. The STRC change takes effect Nov. 1, and the STRF, STRK and STRD changes take effect Jan. 1, 2027. The filing said the change does not alter dividend rates or the total dividends payable.

CFO transition

Kang will step down as executive vice president and CFO effective Nov. 5 and remain as an adviser through Dec. 31, the company said. Le will serve as principal financial officer during the transition. On Jan. 1, 2027, Reza Virasteh, currently executive vice president of operations, will become CFO and serve as co-principal financial officer alongside Le.

By the numbers

• $20.91 billion: third-quarter operating income
• $44.75: diluted EPS, versus $8.42 a year earlier
• 848,517: bitcoins held as of Oct. 25
• $125.4 million: revenue, down 3%
• $2.04 billion: STRC preferred shares repurchased this year

Sources

1. Strategy Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1) and CFO transition (Item 5.02), filed Oct. 29, 2026 (accession 0001050446-26-000047)
2. Strategy Form 8-K with amended preferred stock certificates of designations and special meeting results, filed Oct. 29, 2026 (accession 0001193125-26-437776)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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