Shares of Bitcoin-treasury giant Strategy jumped in after-hours trading after the company posted strong third-quarter earnings, signaling continued investor confidence in its long-term Bitcoin strategy despite recent market volatility.
Bitcoin-Backed Firm Beats Analyst Expectations
Strategy reported a net income of $2.8 billion for the third quarter ending Sept. 30, surpassing Wall Street’s expectations of $8.15 per share with diluted earnings per share of $8.42. Although income fell from its record $10 billion in Q2, it marked a major turnaround from the $340.2 million loss the firm posted a year earlier.
Following the report, Strategy’s shares (MSTR) rose 5.7% in after-hours trading, climbing to around $269 after closing the session down 7.5% at a six-month low of $254.57.
“The company continues to outperform in an uncertain market, proving that disciplined Bitcoin accumulation remains a profitable strategy,” said one market analyst.
Bitcoin Holdings Drive Quarterly Results
Strategy remains the largest corporate holder of Bitcoin, with its massive reserves playing a pivotal role in its quarterly performance. The firm’s income was buoyed by a 6.5% rise in Bitcoin prices during the quarter, though the cryptocurrency has since pulled back slightly, trading near $108,500 after dipping below $106,500 earlier in the day.
The company added 42,706 BTC in Q3, bringing its total holdings to 640,031 BTC as of Sept. 30, and has since increased its stash to 640,808 BTC — acquired at an average cost of $74,032 per Bitcoin.
Outlook and Valuation Pressure
Despite strong results, Strategy’s market net asset value (mNAV) has declined to 1.05x, down sharply from its 3.89x peak in November 2024, reflecting weaker Bitcoin momentum since the post-election rally.
Strategy’s mNAV has fallen to its lowest level since early 2023. : StrategyTracker
Still, the company maintains an ambitious outlook, projecting a 30% Bitcoin yield and $24 billion net income for the full year, assuming Bitcoin reaches $150,000.
“Even with short-term price headwinds, Strategy’s conviction in Bitcoin remains unmatched,” noted another industry expert. “Their continued accumulation reinforces the firm’s belief that institutional-scale Bitcoin exposure is the future of corporate finance.”
Strategy’s Q3 performance highlights the resilience of its Bitcoin-focused model — showing that even amid price swings, its accumulation strategy continues to deliver strong results and renewed investor confidence.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.