Bitcoin News Today: Bitcoin's Surge Fuels $2.8B Profit as Strategy's Stock Falls 15% YTD

Strategy Inc. (NASDAQ: MSTR), the corporate Bitcoin treasury firm formerly known as MicroStrategy, reported a net income of $2.8 billion for Q3 2025, driven by a surge in unrealized gains from its massive Bitcoin holdings, according to a BiteMyCoin report. The earnings represent a dramatic turnaround from a $340 million loss in the same period last year and underscore the company's transformation into a full-scale Bitcoin treasury operator, as noted in an FXLeaders article.

The firm's Bitcoin portfolio, now valued at $70.6 billion and consisting of 640,808 BTC, contributed $20 billion in unrealized gains during the quarter, the BiteMyCoin report added. Acquired at a total cost basis of $47.4 billion, the holdings have appreciated significantly as Bitcoin traded near $110,000, yielding a 26% BTC yield year-to-date, the report said. This performance aligns with the company's "buy-and-hold" strategy, which prioritizes long-term capital appreciation over short-term volatility, a point also highlighted by FXLeaders.

The financial results were bolstered by a new fair value accounting rule effective January 2025, enabling Strategy to recognize gains from Bitcoin's market appreciation without selling the asset, the BiteMyCoin piece noted. This shift has fundamentally altered the company's financial reporting, allowing quarterly profits to reflect Bitcoin's price movements, according to a Futunn transcript. Operating income surged to $3.9 billion, reversing a $432.6 million operating loss in Q3 2024, the BiteMyCoin coverage reported.

CEO Phong Le reaffirmed ambitious 2025 targets, including $34 billion in operating income and $80 in diluted EPS, contingent on Bitcoin reaching $150,000 by year-end, the BiteMyCoin report said. CFO Andrew Kang emphasized the company's disciplined capital-raising efforts, which raised $5.1 billion in Q3 alone through common stock and preferred shares, bringing total 2025 capital raises to $20 billion, according to FXLeaders. These funds have been reinvested into Bitcoin acquisitions, expanding holdings by over 40,000 BTC since Q2 2025, as reported in a CryptoBriefing piece.

Despite robust financials, Strategy's stock faced headwinds, closing at $254.57—a 4.9% decline on the day and down 15.15% year-to-date, the BiteMyCoin article observed. The stock's performance diverged from Bitcoin's 51.74% annual gain, reflecting investor concerns over dilution from capital raises and regulatory uncertainties, a trend also noted by FXLeaders. However, the company's recent S&P "B-" credit rating and innovative preferred stock offerings, such as STRC's adjustable-rate perpetual preferred shares, aim to broaden its capital markets appeal, the BiteMyCoin analysis added.

The core software business also showed resilience, generating $128.7 million in revenue—a 10.9% year-over-year increase driven by a 65.4% growth in subscription services, according to a Globe and Mail release. While this segment remains a smaller portion of Strategy's operations, it highlights the firm's dual focus on Bitcoin treasury management and enterprise software innovation, as FXLeaders observed.