Strategy (NASDAQ: MSTR) reported net income of $2.8 billion for the third quarter of 2025, a sharp turnaround from a loss of $340 million a year earlier.
The company reaffirmed its full-year forecast of $34 billion in operating profit and $20 billion in Bitcoin gains, solidifying its position as the world’s largest Bitcoin holder.
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Strong Q3 Results on Bitcoin Strategy Appreciation
Strategy reported net income of $2.78 billion, or $8.42 per share, for the quarter ended September 30. That compares to a loss of $340.2 million, or $1.72 per share, for the same period last year. Operating profit reached $3.9 billion for the quarter.
CEO Michael Saylor announced results on
The company’s profitability comes largely from gains made on its Bitcoin holdings. As of October 26, 2025, Strategy held 640,808 bitcoins acquired for $47.44 billion, or $74,032 per bitcoin. With Bitcoin currently trading around $107,833, the company has significant unrealized gains.
Bitcoin Cash Model Creates a Self-Reinforcing Cycle
Strategy’s business model has evolved into what industry observers call a “Bitcoin treasury company.” The company’s approach is to hold Bitcoin as its primary cash reserve asset. This buy-and-hold strategy has fundamentally transformed the way the market values the company.
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Rising Bitcoin prices tend to appreciate Strategy’s stock price. This allows the company to raise additional capital through stock offerings. The capital is then reinvested into Bitcoin purchases, creating a self-reinforcing cycle. This model has inspired many other businesses to adopt similar cash flow strategies.
Accounting changes allow profit recognition
Until the fourth quarter of last year, Strategy could only record losses in value when the value of Bitcoin fell below its purchase price. Gains from price increases remained unrealized unless the cryptocurrency was sold. Changes to accounting treatment now allow the company to recognize gains from Bitcoin appreciation.
This accounting change transformed Strategy’s financial statements. The company can now report quarterly profits that reflect the market value of its Bitcoin holdings. This provides greater transparency on the economic reality of its Bitcoin treasury strategy.
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Full Year Forecast and Market Performance
The strategy reaffirmed its guidance for the year 2025. The company projects operating profit of $34 billion and Bitcoin earnings of $20 billion. Saylor emphasized the company’s unwavering commitment to its strategy, with no plans to hedge its Bitcoin position.
“Saylor has transformed a public company into a new-age treasure trove. While most CEOs seek quarterly validation, he is building a parallel reserve system. Each report feels less like earnings and more like a fulfilled prophecy.”
Despite Bitcoin’s strong performance and profitability, Strategy shares are down about 12% year-to-date in 2025. This contrasts with Bitcoin’s 14.5% gain over the same period. This divergence suggests that the market may be pricing in concerns around valuation, dilution from capital raises or regulatory uncertainties.
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However, shares rose nearly 4% in after-hours trading following the results announcement. This positive reaction indicates continued investor interest in the company’s Bitcoin treasury model.
Broader implications for corporate cash flow management
Strategy’s success with its Bitcoin treasury approach has broader implications for corporate finance. US President Donald Trump’s focus on the digital assets sector and his commitment to making America the global center for cryptocurrencies has created a favorable regulatory environment. Strong ETF inflows helped Bitcoin reach multiple record highs in 2025.
The company’s model shows how businesses can use Bitcoin as a Treasury reserve asset. This represents a departure from traditional cash management strategies that rely on short-term securities and bonds. As Bitcoin gains acceptance as an institutional asset class, more companies may consider similar treasury strategies.
The strategy’s quarterly results continue to validate the Bitcoin cash company concept. The model transforms traditional notions of corporate cash management and creates new frameworks for valuing companies that hold significant positions in cryptocurrencies.
