Strategy Stock Surges 5% as Profit Streak Fuels S&P 500 Inclusion Hopes
Shares of Strategy (NASDAQ: MSTR) surged 5% in the past 24 hours and are up more than 7% over the past week, signaling a potential bullish trend reversal for the Bitcoin-focused firm.
MSTR price (Source: Google Finance)
The rally comes as analysts forecast that Strategy will post its second consecutive profitable quarter in Q3 2025, fueled by Bitcoin’s rise to above $114,000.
According to Jeff Walton, Chief Risk Officer of Strive, Strategy is expected to record net income of $2.9 billion, or $10 per share, as Bitcoin advanced from around $107,000 at the start of the quarter to $114,000 by quarter’s end.
Strengthening the Case for S&P 500 Entry
This marks the second straight quarter of profitability, following a strong Q2 that delivered $32.6 per share in earnings. Together, Q2 and Q3 profits offset losses in late 2024 and early 2025, giving the company trailing twelve-month EPS of roughly $22.80.
The positive earnings trajectory strengthens Strategy’s case for inclusion in the S&P 500 index, which requires positive trailing twelve-month EPS, profitability in the most recent quarter, at least 50% public float, and a minimum average trading volume of 250,000 shares.
Strategy meets all of those requirements, though the decision ultimately rests with the S&P committee. The next rebalancing is set to take place after markets close on Dec. 19, 2025.
Walton’s analysis factors in a $970 million deferred tax liability, a key adjustment stemming from Bitcoin accounting rules. Even with this liability, Strategy’s projected net income of $2.9 billion highlights the growing impact of Bitcoin’s price swings on corporate treasuries tied to digital assets.
Also read: Could Michael Saylor’s Strategy Become a $1 Trillion Company?
Dividend Boost on STRC Preferred Stock
In addition to its profit streak, Strategy is boosting shareholder returns. The company increased the dividend rate on its perpetual preferred stock STRC from 10% to 10.25%, payable Oct. 31.
Future adjustments will be tied to the five-day VWAP of STRC before each month’s final trading day. With STRC trading near $97 — within the guided $95 to $98.99 range — Strategy is signaling its intent to gradually lift dividends to bring STRC closer to its $100 par value.
Why It Matters
With back-to-back profits, a surging share price, and shareholder-friendly dividend policies, Strategy is solidifying its reputation as the leading digital asset treasury company.
As Bitcoin continues to trade at historically high levels, the firm’s strong performance could finally push it into the ranks of the S&P 500, a milestone that would mark a new era of legitimacy for crypto-focused corporate treasuries.
