Strategy posts $19.5 billion Q3 net income as preferred shareholders approve daily dividends
Strategy, the company that holds more bitcoin than any other firm, reported $19.53 billion in net income for the third quarter of 2026. That is up from $2.79 billion a year earlier. The jump came mostly from a $20.91 billion gain on the rising value of its bitcoin holdings, which the company said drove record operating income.
Alongside the earnings, holders of the company's four preferred share classes — STRC, STRF, STRK and STRD (a type of stock that pays fixed dividends) — approved a change this week that lets those dividends accrue daily instead of on the old schedule. The amendment won 99.3% of votes cast, according to results shared by Executive Chairman Michael Saylor.
Key numbers from the quarter
- Net income: $19.53 billion, up from $2.79 billion a year earlier.
- Bitcoin gain: $20.91 billion on the rising value of its holdings.
- Holdings: 848,517 bitcoin as of Oct. 25, up 26% year to date.
- Software revenue: $125.4 million, down 3% year over year.
- Stock: MSTR fell about 3.5% in after-hours trading Thursday.
- STRC: the firm said the instrument "returned to health" through $2.04 billion of repurchases.
Management change announced with results
Strategy said CFO Andrew Kang will step down on Nov. 5. Current COO Reza Virasteh is set to become CFO in January 2027.
What executives said
In the company's earnings release, Saylor said: "We're at the beginning of the next bitcoin bull market. Banks are embracing bitcoin, bitcoin's dominance among digital assets is growing, institutional demand is back, and bitcoin price is 21% above its 200-week moving average." He also noted the firm's Digital Credit platform has $16 billion in notional value across ten publicly listed securities. These are executive statements, not independently confirmed facts.
CEO Phong Le said the daily-dividend change fits a wider shift: "Daily dividends are a natural step toward the tokenized, 24/7/365 financial system. Digital Credit is being built for that world, and Strategy intends to lead it."
How the new dividend schedule works
STRC's first record date will be Nov. 1, with payment on Nov. 2. STRF, STRK and STRD will follow with a Jan. 1 record date and Jan. 4 payment. After that, every calendar day counts as a record date, with payment on the next business day.
What is confirmed and what is estimated
Confirmed: the net income, bitcoin gain, holdings count, revenue figures, dividend vote result, dividend dates, and the CFO transition all come from the company's report as covered by The Block.
Estimates and opinion: research firm K33 estimated earlier this month that STRC had added $725 million to the company's annual dividend obligations — this is a third-party estimate, not a company figure. Saylor's "beginning of the next bitcoin bull market" remark is his opinion. The Block notes MSTR's after-hours share move, which is preliminary trading data rather than a closing figure.
Why this matters
Strategy funds its bitcoin purchases partly through preferred-stock offerings, and those shares carry dividend obligations. The vote moves those payouts to a daily rhythm, which management frames as a step toward round-the-clock finance. The size of the dividend burden is under scrutiny: the K33 estimate of $725 million added per year shows why the cost of this funding model is being watched.
What happens next
Kang leaves the CFO role on Nov. 5. STRC holders see their first daily-dividend record date on Nov. 1 with payment the next day. The other three preferred classes start daily accrual from a Jan. 1 record date, with payment on Jan. 4.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.