TLDR
- Strategy (MSTR) stock fell about 3.5% in Thursday’s after-hours trading.
- Q3 net income hit $19.53 billion, up from $2.79 billion a year earlier.
- The company held 848,517 bitcoin as of Oct. 25, up 26% year to date.
- CFO Andrew Kang steps down Nov. 5, with Reza Virasteh taking over in January 2027.
- Saylor said Strategy could create up to $30 billion in digital credit.
Strategy (MSTR) stock fell about 3.5% in Thursday’s after-hours trading. The move followed its third-quarter report and a CFO change.
Net income hit $19.53 billion, up from $2.79 billion a year earlier. A $20.91 billion gain on its bitcoin holdings did most of the work.
The company also posted record operating income. Software revenue told a softer story, falling 3% to $125.4 million.
Strategy held 848,517 bitcoin as of Oct. 25. That is up 26% so far this year.
Saylor Eyes More Bitcoin Buying
Executive Chairman Michael Saylor said the company is at the start of the next bitcoin bull market. He pointed to banks embracing bitcoin and institutional demand returning.
He added that bitcoin trades 21% above its 200-week moving average. Digital Credit now totals $16 billion in notional value across ten listed securities.
On the earnings call, Saylor said Strategy could create $10 billion, $20 billion or $30 billion of digital credit. He said that would not need a new common stock raise or higher bitcoin prices.
CEO Phong Le said issuing digital credit is the main way to buy more bitcoin. If Strategy raised $1 billion to $2 billion in a month through STRC, some could go to dollar reserves and the rest to bitcoin.
The $30 billion figure is a possible capacity, not a fundraising target. Strategy has not announced a goal at that level.
The company is leaning on preferred stock like STRC more than convertible debt or common stock sales. It said STRC “returned to health” after $2.04 billion in repurchases.
K33 estimated earlier this month that STRC added $725 million to annual dividend obligations. That is a bill the company will have to cover.
Daily Dividends Get the Green Light
Earlier this week, holders of STRC, STRF, STRK and STRD approved daily dividend accrual. The amendment passed with 99.3% of votes cast, Saylor said.
Le called the change a natural step toward a 24/7/365 financial system. Strategy intends to lead it, he said.
STRC’s first record date is Nov. 1, with payment on Nov. 2. STRF, STRK and STRD follow with a Jan. 1 record date and Jan. 4 payment.
After that, every calendar day becomes a record date. Payment comes on the next business day.
CFO Andrew Kang will step down Nov. 5 for personal reasons. Le will oversee finance until COO Reza Virasteh takes over as CFO on Jan. 1, 2027.
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