Strategy bought 811 more bitcoin — while sitting on a $19.5 billion paper profit
The bitcoin treasury company added to its stack last week even as bitcoin trades just 2.8% above its average purchase price. Its record third-quarter profit is almost entirely a paper gain.
Key facts
- Strategy bought 811 bitcoin for about $65.5 million between October 26 and November 1
- Total holdings reached 849,327 bitcoin bought for roughly $64.1 billion at about $75,451 per coin
- Third-quarter net income was $19.53 billion, driven by a $20.91 billion gain on digital assets
- Bitcoin near $77,567 sits only about 2.8% above Strategy's average cost of roughly $75,446
- CFO Andrew Kang steps down on November 5; COO Reza Virasteh takes over the role in January
Strategy is still buying. The bitcoin treasury company formerly known as MicroStrategy bought another 811 bitcoin between October 26 and November 1, spending about $65.5 million at an average of $80,846 per coin, according to its 8-K filing on Monday. That takes its total to 849,327 bitcoin, bought for roughly $64.1 billion at an average cost of about $75,451 per coin. Rival treasury firm Strive added 124 bitcoin in the same period, lifting its stack to 43,124.
The purchase landed days after Strategy reported the biggest profit in its history — and one that needs careful reading. Third-quarter net income was $19.53 billion, or $44.75 per diluted share, with $19.12 billion attributable to common stockholders. Operating income was $20.91 billion, driven almost entirely by a $20.91 billion gain on digital assets. That gain is an accounting entry, not cash: under fair-value rules, Strategy marks its bitcoin to market each quarter, and bitcoin rose from about $58,700 to roughly $83,600 during the quarter. The company did not sell a single coin to book it. Revenue from its actual software business was $125.4 million, down about 3% from a year earlier and short of analyst expectations near $127 million.
The thin cushion is the real story. With bitcoin trading around $77,567 on November 1, the price sits only about 2.8% above Strategy's average cost of roughly $75,446 per coin. A fall below that level would put the whole stack underwater on paper — and part of the third-quarter gain has already reversed, since bitcoin closed the quarter near $83,600 and now trades near $78,000. Strategy's own BTC Yield measure, which tracks bitcoin per assumed diluted share, was negative 3.7% year to date through October 25, reflecting shares and preferred stock issued to fund purchases, dividends and buybacks. The company did sell about $431.8 million of bitcoin during 2026 to fund part of its preferred dividends and buybacks of its STRC preferred shares.
Executive chairman Michael Saylor is undeterred, calling the quarter the start of the next bitcoin bull market and pointing to bank adoption and renewed institutional demand. The company also reported $5.07 billion in U.S. dollar assets, which it says covers 3.4 years of dividend and interest obligations. One change is coming at the top: chief financial officer Andrew Kang steps down on November 5, with chief operating officer Reza Virasteh taking over the role in January. Strategy's shares closed Friday at $130.51, down about 9% on the week.
Why it matters: Strategy is the purest listed bet on bitcoin, and its numbers show both sides of that bet at once — a record profit that vanishes if prices fall, and a buying programme that continues anyway. For ordinary investors, the lesson is simpler: when a company's profit is mostly the rising price of one asset, its earnings report is really a price chart with footnotes.
What to watch: whether bitcoin holds above Strategy's ~$75,450 average cost; the CFO handover on November 5; and whether the company keeps buying through its preferred-stock programme.