Strategy Inc. returned to profitability for the first time in four quarters after registering an unrealized gain from an increase in the value of its Bitcoin holdings during the late summer’s rally in the cryptocurrency.
The world’s largest publicly traded Bitcoin accumulator said it recorded a $21 billion gain on its digital assets in the three months ended Sept. 30. Bitcoin rose 43% during the third quarter. The company follows accounting standards that require changes in the fair value of its Bitcoin holdings to flow through earnings, driving multibillion-dollar quarterly swings in results.
Despite the rebound, Strategy is grappling with waning demand for a variety of its securities among investors that want to gain Bitcoin exposure while not directly holding the digital asset. The firm has scaled back common stock sales amid shareholder concern about dilution and spent more than $1 billion to buy back its most popular preferred shares, which trade at a price that makes it unprofitable to issue more to fund additional Bitcoin purchases.
The firm is attempting to shore up demand for the STRC preferred shares by switching its dividend payments from semi-monthly to daily. Michael Saylor — the firm’s co-founder and executive chairman — said last week the change can lower volatility and improve liquidity for the preferred shares.
Saylor has been trying to make preferred shares as the main funding source for Bitcoin purchases since last year when premium over its share prices evaporated amid a crypto downturn. To address the dilution of common shareholders, the firm issued four US-listed series of preferred shares, raising several billion dollars. While not dilutive, such securities incur hefty dividends, putting more stress on Strategy’s cash flow.
As the crypto rout continued, a new capital framework by Strategy in June says the firm will repurchase both common stock and preferred shares and sell Bitcoin in part to improve liquidity and reduce leverage in its capital structure. The firm has recently resumed Bitcoin purchases while selling both common and preferred shares amid the respite in Bitcoin prices over the last few weeks.
Strategy reports a $21 billion gain on digital assets in Q3 2026. Last week, we acquired 334 $BTC and repurchased $176M of $STRC . As of 10/4/26, we hold 848,000 BTC and $5.7B of USD Assets. $MSTR https://t.co/jvwiJahdMm
— Michael Saylor (@saylor) October 5, 2026
Strategy, formerly known as MicroStrategy, also said it bought $28.7 million of Bitcoin from Oct. 1 through Oct. 4, according to a US Securities and Exchange Commission filing Monday. It also repurchased $176 million of STRC preferred shares. The firm holds 848,000 Bitcoin, value at around $73 billion.
The common shares of Strategy have dropped more than 50% over the past year, while Bitcoin is off around 30% during the same period. The STRC preferred shares have traded below face value since May.