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Bitcoin News Update: Bitcoin Rally Drives $2.8B in Gains While Strategy's Shares Drop 15% Year-to-Date

Bitcoin News Update: Bitcoin Rally Drives $2.8B in Gains While Strategy's Shares Drop 15% Year-to-Date

Bitget-RWA2025/11/01 18:20
By:Bitget-RWA

- Strategy Inc. (MSTR) reported $2.8B Q3 2025 net income from Bitcoin's $70.6B portfolio (640,808 BTC) amid $20B unrealized gains. - New fair value accounting rules enabled profit recognition without selling Bitcoin, reversing $340M 2024 losses and boosting operating income to $3.9B. - CEO Phong Le targets $34B operating income if Bitcoin hits $150K, while $20B 2025 capital raises expanded holdings by 40,000 BTC. - Despite 51.74% BTC gains, shares fell 15.15% YTD due to dilution concerns, contrasting with

Strategy Inc. (NASDAQ: MSTR), previously known as MicroStrategy and now a corporate

treasury specialist, posted a net profit of $2.8 billion for the third quarter of 2025, largely fueled by significant unrealized gains from its extensive Bitcoin reserves, according to . This marks a remarkable shift from the $340 million loss reported in the same quarter last year, highlighting the company’s evolution into a dedicated Bitcoin treasury entity, as mentioned in .

The company’s Bitcoin assets, now worth $70.6 billion and totaling 640,808

, generated $20 billion in unrealized profits during the quarter, according to BiteMyCoin. Purchased at a combined cost of $47.4 billion, these holdings have seen substantial appreciation as Bitcoin’s price hovered near $110,000, resulting in a 26% BTC yield so far this year, the report noted. This outcome is consistent with the firm’s “buy-and-hold” , which focuses on maximizing long-term value rather than reacting to short-term market swings, a point also emphasized by FXLeaders.

Bitcoin News Update: Bitcoin Rally Drives $2.8B in Gains While Strategy's Shares Drop 15% Year-to-Date image 0

The company’s financial performance benefited from a new fair value accounting standard introduced in January 2025, which allows Strategy to record gains from Bitcoin’s rising market value without needing to sell, as noted by BiteMyCoin. This change has significantly impacted the company’s financial statements, enabling quarterly earnings to mirror Bitcoin’s price changes, according to

. Operating profit soared to $3.9 billion, reversing a $432.6 million operating deficit in Q3 2024, BiteMyCoin reported.

CEO Phong Le reiterated the company’s ambitious 2025 goals, including $34 billion in operating profit and $80 in diluted earnings per share, provided Bitcoin hits $150,000 by year-end, according to BiteMyCoin. CFO Andrew Kang highlighted the firm’s prudent approach to raising capital, which brought in $5.1 billion in the third quarter alone through common and preferred stock, raising the total for 2025 to $20 billion, as reported by FXLeaders. These funds have been used to purchase more Bitcoin, increasing the company’s holdings by over 40,000 BTC since the second quarter of 2025, according to

.

Despite strong financial results, Strategy’s shares faced challenges, ending the day at $254.57—a drop of 4.9% and down 15.15% for the year, BiteMyCoin observed. This contrasts with Bitcoin’s 51.74% annual rise, reflecting investor worries about dilution from capital increases and regulatory risks, a trend also pointed out by FXLeaders. Nevertheless, the company’s recent “B-” credit rating from S&P and innovative preferred stock offerings, such as STRC’s adjustable-rate perpetual preferred shares, are intended to enhance its appeal in capital markets, according to BiteMyCoin.

The core software division also performed well, delivering $128.7 million in revenue—a 10.9% increase from the previous year, driven by a 65.4% jump in subscription services, according to

. While this business remains a smaller part of Strategy’s overall operations, it demonstrates the company’s commitment to both Bitcoin treasury management and innovation in enterprise software, as noted by FXLeaders.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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