MicroStrategy Inc. (Nasdaq: MSTR), the largest corporate holder of Bitcoin and a pioneer in Bitcoin treasury management, announced its third-quarter financial results for the period ending September 30, 2025. The company reported a remarkable net income of $2.8 billion, translating to a diluted earnings per share (EPS) of $8.42, marking a significant turnaround from a net loss of $340.2 million in the same quarter of the previous year.

Phong Le, President and Chief Executive Officer of MicroStrategy, emphasized the company's unwavering commitment to its Bitcoin treasury strategy, stating, "In the third quarter and into October, MicroStrategy continued to strengthen its position as the world’s leading Bitcoin Treasury Company. We increased our Bitcoin holdings to 640,808 Bitcoin and have raised $20 billion year-to-date through our robust capital markets platform."

2. Key Financial Highlights

MicroStrategy’s financial performance this quarter showcased impressive growth metrics:

Operating Income: The company generated an operating income of $3.9 billion, a substantial rebound from an operating loss of $432.6 million in Q3 2024.

Net Income: The net income for the quarter stood at $2.8 billion, or $8.42 per diluted share, compared to a net loss of $340.2 million, or $1.72 per diluted share, for the same period last year.

Cash and Cash Equivalents: As of September 30, 2025, cash and cash equivalents increased to $54.3 million, up from $38.1 million at the end of 2024.

Revenue Breakdown

Total revenues for the third quarter reached $128.7 million, reflecting a year-over-year increase of 10.9%. Notable revenue streams included:

Subscription Services: Revenue from subscription services rose by 65.4% to $46 million.

Product Licenses and Subscription Services: This segment generated $63.3 million, a 62.9% increase year-over-year.

Product Support Revenues: This area saw a decrease of 16.2% to $51.1 million.

3. Bitcoin Performance Metrics

MicroStrategy’s Bitcoin holdings have been a cornerstone of its financial strategy. As of October 26, 2025, the company reported:

Holdings: Approximately 640,808 Bitcoin, with an original cost basis of $47.4 billion and a market value of $70.9 billion.

BTC Yield: The year-to-date BTC yield was 26.0%, with a goal of reaching 30% by year-end.

BTC $ Gain: Year-to-date BTC $ gain amounted to $12.9 billion, with a target of $20 billion for the full year.

Andrew Kang, Chief Financial Officer, reaffirmed the company's full-year guidance: "We are reaffirming our full-year targets of $20 billion BTC $ Gain and a 30% BTC Yield."

4. Capital Market Activities

MicroStrategy has successfully harnessed capital markets to fund its growth. The company raised approximately $5.1 billion in net proceeds during the third quarter through various equity offerings, and an additional $89.5 million through related transactions in October.

STRC Dividend Rate Increase

In a move to reward shareholders, MicroStrategy announced a 25 basis points increase in the STRC dividend rate to 10.50%, effective November. The company has a structured dividend adjustment framework to ensure its dividend rates are aligned with market performance.

5. Future Outlook

Looking ahead, MicroStrategy has reaffirmed its financial guidance for the full year, projecting:

Operating Income: Approximately $34 billion

Net Income: Approximately $24 billion

Diluted EPS: Approximately $80 per share

The company’s guidance is based on an anticipated Bitcoin price of $150,000 by year-end 2025. However, it cautioned that actual results may vary based on fluctuations in Bitcoin prices.

6. Conclusion

MicroStrategy’s third-quarter results underscore its position as a leader in the digital asset space, demonstrating resilience and strategic foresight in capitalizing on Bitcoin as a treasury reserve. With a robust financial foundation, increasing Bitcoin holdings, and a clear growth strategy, MicroStrategy is poised for continued success in the evolving landscape of digital assets.

Upcoming Conference Call

MicroStrategy will host a live video webinar today at approximately 5:00 p.m. ET to discuss its third-quarter financial results in more detail. Interested parties can access the conference through the company's investor relations website.

Original press release