Strategy Q3 2026: A $20.9 Billion Bitcoin Gain Drives a Massive EPS Beat
As seen on the 24/7 Wall St. homepage on October 29, 2026.
The entire earnings beat came from a $20.91 billion gain on bitcoin holdings, while software revenue slipped year over year and missed expectations. The real change for income investors: all four preferred series move to daily dividend accrual, starting November 1.
Continue ReadingShow less
Strategy reported GAAP diluted EPS of $44.75 for the third quarter of 2026, far exceeding expectations. The entire outperformance traced back to a $20.91 billion gain on bitcoin holdings as the cryptocurrency rebounded after losses weighed on the first two quarters.
The underlying software business weakened: revenue of $125.43 million missed expectations and slipped from the same quarter a year ago. Declines in product licenses and product support offset growth in subscription services.
Preferred dividend obligations are growing in step with the company's expanding capital structure, reducing net income attributable to common stockholders by $419.56 million in the quarter. A tax provision also weighed on the bottom line.
Sponsored
The most consequential forward-looking item for income investors is the shift to daily dividend accrual. Shareholders approved the change on October 28, with STRC moving to daily dividends on November 1, 2026, and STRF, STRK, and STRD following on January 1, 2027. Holders then accrue income every calendar day, weekends included.
CFO Andrew Kang departs November 5, 2026, with Reza Virasteh taking over as CFO on January 1, 2027. Executive Chairman Michael Saylor stated he believes bitcoin is at the beginning of its next bull market. That view will be tested against bitcoin-driven swings in reported earnings.