Strategy, formerly MicroStrategy, reported record operating income of $20.91 billion for the third quarter, driven entirely by an increase in the book value of its Bitcoin holdings. Yet Bitcoin held per share was down 3.7% year to date, even as the company’s total Bitcoin holdings grew 26%. The figures show that a larger Bitcoin reserve does not necessarily translate into more Bitcoin backing each share.
Strategy shares closed at $141.62 on October 29, down 2.4%, and traded below the value of the company’s Bitcoin holdings. Its quarterly earnings, Bitcoin per share and share price relative to its net asset value pointed in different directions.
Bitcoin revaluation drives record earnings
US accounting rules require companies to recognize quarterly changes in crypto asset values in their income statements, whether or not the assets are sold. Bitcoin’s price rise in the third quarter led Strategy to record a $20.91 billion gain on its holdings. The company reported net income of $19.53 billion, or $44.75 per share.
The gain largely reflects a change in the reported value of Strategy’s holdings, not cash proceeds from Bitcoin sales. The same accounting treatment can produce substantial losses when prices fall. Strategy recorded an $8.22 billion quarterly loss in the second quarter, when Bitcoin held per share was still up 4.5% year to date. By the end of the third quarter, that measure had turned negative, falling 3.7% for the year.
Share issuance and Bitcoin sales weigh on per-share holdings
Strategy said it raised $21.23 billion in 2026, mainly by issuing new shares. It also sold $431.8 million worth of Bitcoin to help fund dividends and repurchases of STRC-related securities. Although total Bitcoin holdings rose 26% year to date, issuing shares expanded the share count while selling Bitcoin reduced the reserve. Both changes affect the amount of Bitcoin attributable to each share.
Whether a share issuance increases Bitcoin held per share depends on the price at which the stock is sold relative to the value of the Bitcoin assets backing it. New funding can increase Bitcoin per share only when shares are issued at a premium to the value of those underlying assets. Assessing Strategy’s accumulation therefore requires more than tracking total holdings or reported gains: investors also need to consider how the company raises capital, changes in its share count and Bitcoin held per share.
Shares trade below the value of Bitcoin holdings
After Strategy reported its third-quarter results, its shares closed at $141.62 on October 29, down 2.4% and below the value of its Bitcoin holdings. The combination of record book gains and a weaker share price suggests that the stock’s valuation is not determined solely by Bitcoin prices and the size of the reserve. Share dilution, dividends and the use of funds for repurchases also shape how investors assess the assets attributable to each share.
The figures highlight the gap between Strategy’s growing Bitcoin reserve and its per-share measure: total holdings were up 26% from the start of the year, while Bitcoin held per share fell 3.7%. The company also recorded a $20.91 billion third-quarter Bitcoin gain and sold $431.8 million worth of Bitcoin. These measures remain central to tracking its accumulation strategy and changes in the assets backing each share.