Shares of Strategy rose nearly 6% after hours as the Bitcoin cash company reported net income of $2.8 billion for its third quarter, down from the second quarter but still above analyst expectations.
Strategy on Thursday reported diluted earnings per share of $8.42 for the quarter ended Sept. 30, beating Wall Street expectations of $8.15.
Its revenue of $2.8 million for the quarter was up significantly from its loss of $340.2 million at the same time a year ago, but down from its record second-quarter net income of $10 billion.
Strategy (MSTR) shares climbed 5.7% after hours to over $269 after ending the trading session Thursday down over 7.5% to a more than six-month low of $254.57.
Strategy owns the largest inventory of Bitcoin (BTC) among public companies, and the cryptocurrency’s rise of more than 6.5% during the quarter helped support the company’s revenue.
Bitcoin is down 1.7% over the past 24 hours, rallying back to $108,500 after an intraday low below $106,500.
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The decline in the price of Bitcoin and Strategy shares reduced its mNAV to 1.05x, from a high of 3.89x in November after Bitcoin skyrocketed following Donald Trump’s election victory in the United States, according to StrategyTracker data.
Strategy said its Bitcoin return had hit 26% so far this year, a gain of $13 billion, and reaffirmed its full-year outlook of hitting a 30% Bitcoin return with a net profit of $24 billion, based on its estimate that Bitcoin will hit $150,000.
The company added 42,706 BTC during the third quarter to hold 640,031 BTC as of September 30. It has since continued its purchases to hold 640,808 as of Sunday, which Strategy says were purchased at an average cost of $74,032.
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