Strategy (MSTR) Rallies as Q3 Earnings Beat Fuels Investor Optimism

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Shares in Strategy (MSTR) surged nearly 6% in after-hours trading after the Bitcoin treasury firm reported stronger-than-expected third-quarter results.

MSTR price (Source: Google Finance)

The company posted a net income of $2.8 billion, surpassing Wall Street’s forecast despite a decline from its record-breaking $10 billion profit in Q2.

Strategy recorded diluted earnings per share of $8.42 for the quarter ending Sept. 30, exceeding analyst expectations of $8.15. While net income was down quarter-over-quarter, the results marked a major rebound from the $340.2 million loss the company reported a year ago.

The stock closed Thursday’s trading session down 7.55% at $254.57 — its lowest level in more than six months — before rebounding to over $269 in post-market activity following the earnings announcement.

Bitcoin Holdings Lift Income

The company’s performance continues to be tightly linked to Bitcoin’s price movements. Strategy, which holds the largest Bitcoin stockpile among public companies, saw its income buoyed by the cryptocurrency’s 6.5% rise over the third quarter.

Bitcoin is currently trading at around $109,088, recovering from an intraday low below $106,500, though it remains down 1.49% over the past 24 hours.

BTC price (Source: CoinMarketCap)

Over the third quarter, Strategy added 42,706 BTC to its treasury, bringing its total holdings to 640,031 BTC by the end of September. The firm has since increased its stash to 640,808 BTC as of Sunday, with an average acquisition cost of $74,032 per coin.

Market Value and Outlook

Despite the positive earnings surprise, Strategy’s market net asset value (mNAV) ratio has fallen to 1.05x, its lowest level since early 2023, according to StrategyTracker data. The metric has dropped sharply from a peak of 3.89x in November, when Bitcoin prices spiked following Donald Trump’s U.S. election victory.

Strategy said its Bitcoin yield has reached 26% so far this year, translating to a $13 billion gain. The company reaffirmed its full-year forecast, targeting a 30% Bitcoin yield and $24 billion in net income based on its projection that Bitcoin will hit $150,000 before year-end.

Broader Market Context

The company’s stock struggles come as Bitcoin remains range-bound around $110,000, limiting upside momentum for crypto-linked equities.

However, Strategy’s strong performance contrasts with broader weakness in the sector and underscores its role as a bellwether for institutional Bitcoin exposure.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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