Strategy profit tops estimates on Bitcoin gains

Investing.com -- Strategy, which is largest corporate holder of the cryptocurrency, reported a stronger-than-expected quarterly profit as gains from its vast Bitcoin holdings lifted results. Shares rose 3.5% in extended trading.

The company which is formerly called MicroStrategy posted third-quarter earnings of $8.42 per share, topping Wall Street estimates of $7.90.

Revenue rose 10.9% to $128.7 million, above expectations of $116.35 million.

Operating income surged to $3.9 billion from a loss of $432.6 million a year earlier, driven by a $3.9 billion unrealized gain on its digital assets under fair value accounting. Net income jumped to $2.8 billion from a $340 million loss a year ago.

Strategy said it now holds about 640808 bitcoins valued at $70.9 billion as of late October, with an average cost of $74032 per coin.

The company generated a 26% Bitcoin yield and a $12.9 billion Bitcoin dollar gain year-to-date, against full-year targets of 30% and $20 billion, respectively.

CEO Phong Le said the company raised $20 billion year-to-date through capital markets and plans to expand its digital credit offerings globally. It also lifted the dividend rate on its STRC securities to 10.5% and reaffirmed guidance for 2025 operating income of $34 billion, net income of $24 billion, and earnings of $80 per share, assuming Bitcoin ends the year at $150,000.

Executive Chairman Michael Saylor said the company has built $71 billion of collateral to support new digital credit products and expects its recent S&P “B-” credit rating to broaden access to institutional investors.

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