Financial Performance Overview
Shares in Strategy have risen nearly 6% after hours as the Bitcoin treasury company reported a net income of $2.8 billion for its third quarter, down from the second quarter but still beating analyst expectations. Strategy on Thursday announced diluted earnings per share of $8.42 for the three months ending Sept. 30, surpassing Wall Street expectations of $8.15.
Its $2.8 million income for the quarter marked a significant increase from its $340.2 million loss during the same period a year ago. However, this figure represents a decrease from its record net income of $10 billion reported in the second quarter.
Following the announcement, shares in Strategy (MSTR) climbed 5.7% in after-hours trading to over $269. This comes after the stock ended the regular trading session on Thursday down over 7.5%, closing at a six-month low of $254.57.
Impact of Bitcoin Holdings
Strategy holds the largest stockpile of Bitcoin (BTC) among publicly traded companies. The cryptocurrency's rise of over 6.5% during the third quarter played a significant role in bolstering the company's income.
Bitcoin is currently trading down 1.7% in the past 24 hours, recovering to $108,500 from an intraday low of under $106,500.
Market Performance and Strategy's NAV
The decline in the price of Bitcoin and Strategy’s stock has impacted its net asset value (NAV) multiple, which has decreased to 1.05x. This is a notable drop from its peak of 3.89x in November, following Bitcoin's surge after Donald Trump's US election win, according to data from StrategyTracker.
Bitcoin Yield and Future Outlook
Strategy reported that its Bitcoin yield has reached 26% year-to-date, resulting in a gain of $13 billion. The company reaffirmed its full-year outlook, projecting a 30% Bitcoin yield with a net income of $24 billion. This projection is based on their estimation that Bitcoin will reach $150,000.
The company significantly increased its Bitcoin holdings during the third quarter, adding 42,706 BTC to reach a total of 640,031 BTC by September 30. Since then, Strategy has continued its acquisitions, holding 640,808 BTC as of Sunday. These purchases were made at an average cost of $74,032 per Bitcoin.