Strategy’s (formerly MicroStrategy) MSTR stock climbed nearly 6% in after-hours trading after the Bitcoin-focused treasury firm reported a third-quarter net income of $2.8 billion. Although earnings fell slightly from the previous quarter, the results still surpassed analyst forecasts.
In a statement released on Thursday, the company announced it earned $8.42 per diluted share for the three months ending September 30, comfortably above Wall Street’s estimate of $8.15. One expert noted that the firm’s performance highlighted continued investor confidence despite recent stock volatility.
Strategy’s $2.8 billion profit for the quarter marked a sharp turnaround from the $340.2 million loss it posted a year earlier. However, the figure was still well below the company’s record $10 billion net income in the previous quarter.
Following the announcement, MicroStrategy stock (MSTR) saw a strong rebound in after-hours trading, rising 6.54% to above $267.37. That recovery came after a tough day on Wall Street, where the MSTR stock had closed down more than 7.5% at $254.57, its lowest level in more than six months.
Strategy holds the largest Bitcoin reserve of any publicly traded company, a position that continues to shape its fortunes. The cryptocurrency’s 6.5% rise during the quarter provided a welcome boost to the firm’s income, helping offset broader market volatility. At the same time, Bitcoin recorded renewed momentum after it rebounded from around $106,500 to $108,500 over the last 24-hours.
Strategy (MSTR) Stock Market Net Asset Value (mNAV) Drops
Data from StrategyTracker showed that the recent slide in both Bitcoin’s price and Strategy’s stock has compressed the company’s market net asset value (mNAV) to 1.05 times, well below the 3.89 peak reached in November. That earlier surge came after Bitcoin’s sharp rally following Donald Trump’s U.S. election victory. While the current ratio reflects a cooling period, Strategy’s exposure to Bitcoin continues to make it one of the most closely watched stocks in the crypto-linked sector.
Strategy reported that its Bitcoin yield has reached 26% so far this year, translating into a $13 billion gain. Michael Saylor also stated Strategy’s full-year target of achieving a 30% yield and $24 billion in net income. This income target is based on estimates that Bitcoin could hit $150,000 by end of year.
During the third quarter, the company also added 42,706 BTC to its portfolio, which brought its total holdings to 640,031 BTC as of September 30. Since then, Strategy has continued to expand its position, reaching 640,808 BTC by Sunday. According to the report, the average cost per Bitcoin across Strategy’s total holdings is $74,032. Experts described Strategy’s Bitcoin accumulation as strategic and informed by a long-term perception of the value of BTC.
Related Performance from Coinbase
In addition, Coinbase also reported a strong third quarter, posting $1.8 billion in revenue and claimed it was one of its best performances in recent years. The exchange said net income rose to $433 million, driven by higher trading volumes and a surge in stablecoin activity. The company also expanded its Bitcoin holdings, adding 2,772 BTC during the quarter to bring its total to 14,548 BTC. That increase places Coinbase among the ten largest corporate holders of the cryptocurrency.