Strategy Inc. recorded strong Q3 earnings with Bitcoin holdings worth nearly $71 billion. Its stock fell 45% from peak levels as investors questioned a high Bitcoin exposure. The firm is planning a global credit issuance backed by Bitcoin to diversify risks.
Strategy Inc. reported a net income of $2.8 billion for the third quarter of 2025, supported by unrealized gains from its large Bitcoin holdings, according to its official financial release. The company’s operating income reached $3.9 billion, while diluted earnings per share stood at $8.42, marking its second consecutive quarter of strong profitability.
As of October 26, 2025, the firm held 640,808 BTC, purchased at an average cost of $74,032 per coin, bringing its total valuation to $70.9 billion. The firm also reported a 26% Bitcoin yield year-to-date and a $12.9 billion BTC gain, one of the most significant performances among publicly traded corporations.
Chief Financial Officer Andrew Kang stated, “We generated BTC yield of 26% and BTC $ gain of $13 billion year-to-date. We are reaffirming our full-year guidance for operating income of $34 billion and net income of $24 billion, based on a BTC price outlook of $150,000 at year-end.”
Despite these positive earnings, Strategy Inc.’s stock has fallen nearly 45% from its November 2024 peak, reflecting investor concerns about its heavy leverage and exposure to the crypto market volatility.
Shift Toward Digital Credit Strategy
Over the last several months, Strategy Inc. has moved away from Bitcoin accumulation as the main strategy and is now venturing into the international issuance of credit securities as the next move. In its Q3 2025 report, the firm announces its goal of being a digital credit issuer with the support of Bitcoin as collateral.
The company’s business strategy aligns with the corporate trend, where businesses are diversifying their financial sources to stay in step with shifting market forces. The big players in the crypto market are gradually changing their strategies to become less dependent on the fluctuations in asset prices while still widening up revenue sources that are linked to financing through blockchain.
Strategy Inc.’s evolution from a business intelligence software provider into a Bitcoin treasury enterprise has drawn both attention and skepticism. Its Q3 filing confirmed that part of the $3.9 billion operating income included unrealized mark-to-market gains on Bitcoin. As noted by the Financial Times, while the gains comply with new accounting rules adopted in January 2025, they remain susceptible to Bitcoin’s volatile price movement.
Market Reaction and Ongoing Risks
There is still a clear sign of caution among investors. The main issues are the following three: dilution risk, volatility correlation, and exposure to regulation. The company has been buying up Bitcoin with the funds raised by the issuance of shares, and this has been giving rise to fears of dilution and a decrease in the value of “Bitcoin-per-share” for the company.
In addition, the strong correlation between the MSTR stock and Bitcoin means that every time the price of the latter dips, the former suffers even more losses. According to Google Finance data on October 30, 2025, the Class A shares of Strategy Inc. ended at $254.57—a decrease of 7.55% or $20.79, from the previous closing price of $275.36.
Throughout the day, the stock’s low was $254.00 and its high was $271.37. However, after-hours trading saw it rise to $269.10, representing a 5.71% gain. The company’s market capitalization was $73.09 billion, with an average trade volume of 12.12 million shares and a P/E ratio of 22.40. The question remains whether the company’s digital credit vision will be the factor that repairs the trust broken by crypto volatility, or if it will exacerbate the situation.