MicroStrategy (STRC) announced on Thursday that it generated a record $20.91 billion in operating income for the third quarter of 2026, according to a filing reported by Bitcoin Magazine. The bulk of the earnings stemmed from a paper profit on the company’s Bitcoin portfolio, which was valued at $68.9 billion as of Oct. 23, when the cryptocurrency traded around $81,200. Net income for the quarter reached $19.53 billion, or $44.75 per diluted share, a sharp rise from $2.79 billion a year earlier.

BTC / USD
Source: CoinGecko. Prices are indicative.

Bitcoin holdings drive earnings

MicroStrategy holds 848,517 Bitcoin, an amount that represents a 26% increase in its holdings year‑to‑date, according to CFO Andrew Kang, who also disclosed his upcoming departure. The average cost of the Bitcoin position sits at $75,446 per coin, leaving the stake in the black on paper. However, measured in dollars the position shows a $2.03 billion loss for the year, reflecting the volatility of the asset. The company’s “Bitcoin per share” metric turned negative for the year, indicating that each share now contains less Bitcoin than it did in January.

Capital deployment and share buybacks

Despite a 3% decline in total revenue to $125.4 million, MicroStrategy raised $21.23 billion in capital during 2026, including $5.41 billion from its at‑the‑market program in Q3. The firm used a large portion of those proceeds to repurchase 20,980,508 preferred shares for $2.04 billion at an average price of $97.39, below the $100 stated value. CEO Phong Le said the buyback aims to strengthen the security’s “firm footing” and will continue while STRC trades below par, with about $956.7 million still authorized for future purchases.

Dividend policy and future outlook

The board kept the STRC dividend rate at 12.00% and approved a shift to daily dividends, set to begin on Nov. 1. Preferred securities STRF, STRK and STRD will follow on Jan. 1, 2027. Le framed the move as a step toward a “tokenized, 24/7/365 financial system,” noting that daily payouts could improve liquidity and reduce price volatility. The company also highlighted that its preferred distributions are expected to be treated as a non‑taxable return of capital for at least a decade, given the lack of positive accumulated earnings and profits.

What to watch next

Investors will monitor Bitcoin’s price trajectory, as any reversal could quickly erode the paper gains that underpin MicroStrategy’s earnings. The firm’s ability to fund further Bitcoin purchases depends on whether STRC can sustain trading below its $100 stated value, which would unlock additional capital for acquisitions. Finally, the impact of daily dividends on share price stability and on the broader market’s perception of crypto‑linked securities will be a key metric for analysts in the coming quarters.