$MSTR · Strategy Inc
Strategy Inc filed its Q3 2026 10-Q, reporting net income of $19.53B ($44.75 diluted EPS) versus $2.79B a year ago, powered by a $20.91B gain on digital assets as bitcoin prices rose during the quarter. Total revenues slipped 2.5% YoY to $125.4M, with subscription services growth (+49%) offsetting sharp declines in product licenses (-78%) and product support (-26%). Bitcoin holdings grew to 847,666 BTC at quarter-end, with the digital asset balance on the balance sheet reaching $70.8B. For the nine-month period, the company posted a net loss of $1.23B due to a $1.86B loss on digital assets earlier in the year.
- Q3 net income of $19.53B vs $2.79B YoY, driven by a $20.91B gain on digital assets from bitcoin price appreciation.
- Total bitcoin holdings reached 847,666 BTC at quarter-end, up from 672,500 at year-end 2025.
- Software segment revenue declined 2.5% YoY to $125.4M; product licenses fell 78% to $3.8M while subscription services grew 49% to $68.6M.
- Diluted EPS of $44.75 vs $8.42 YoY; basic shares outstanding surged to 421.98M from 287.11M a year ago.
- Nine-month period shows a $1.86B loss on digital assets and net loss of $1.23B, highlighting extreme quarterly volatility.
Extended-hours trading shows MSTR at $131.10, up 0.26% from the regular close — a muted reaction suggesting the massive bitcoin-driven earnings swing was largely anticipated given bitcoin's well-known Q3 price trajectory.
The $20.9B quarterly bitcoin gain is larger than the annual revenue of most S&P 500 companies, yet the nine-month net loss of $1.23B underscores the extreme earnings volatility of Strategy's bitcoin-centric model.
Strategy's results remain almost entirely decoupled from its legacy software business; the $20.9B quarterly bitcoin gain dwarfs the $125.4M in total software revenue. The company now holds 847,666 BTC — roughly 4% of all bitcoin that will ever exist.
The filing notes that bitcoin price declines could force asset sales to meet obligations, and that the company's ability to access capital markets on favorable terms is critical to its bitcoin acquisition strategy. A sustained bitcoin downturn would disproportionately impact results given the $70.8B digital asset position.