Strategy Books Record Paper Profit as Its CFO Exits and Preferred Stock Nears Par

By Coinvote

Published October 30, 2026 - 15:26 UTC | 5 mins read

Strategy's third-quarter operating income hit $20.91 billion, almost all from marking up its bitcoin, and the release also announced CFO Andrew Kang's departure. The report shows how much the company relies on bitcoin's price and on its preferred stock to fund the treasury.

A record quarter and a CFO departure in one release

Strategy said on Thursday that its third-quarter operating income was the biggest it has ever recorded. The same release announced that Chief Financial Officer Andrew Kang is leaving. CoinDesk reported that Kang resigned as the company posted about $21 billion in quarterly operating income and holdings of 848,517 BTC.

Bitcoin Magazine gave the exact operating income as $20.91 billion. It put net income at $19.53 billion, or $44.75 per diluted share, compared with $2.79 billion a year earlier. CoinDesk's summary offers no reason for Kang's exit, and none of the four outlets gives one.

How a bitcoin price move turns into record earnings

Strategy marks its bitcoin to market every quarter, so price changes flow directly into reported earnings. According to Bitcoin Magazine, most of the $20.91 billion was a paper gain on the bitcoin stack rather than cash from the software business. The Block describes the result the same way, as net income of $19.53 billion on a $20.91 billion bitcoin gain.

Bitcoin Magazine said the 848,517 bitcoin were worth $68.9 billion on October 23, when the token traded at $81,200. The average cost of the position is $75,446, which keeps it above cost on paper. CoinGecko data now shows bitcoin at $77,714, still above that average cost but down 4.5% over 24 hours and 5.9% over seven days. The all-time high of $126,080 was set on October 6, 2025.

Fair-value accounting works in both directions. When the price falls, the same method books a paper loss instead of a gain.

The numbers behind the headline

The profit figure sits next to weaker operating and per-share measures. Bitcoin Magazine's full report supplies most of the detail below, and The Defiant adds the preferred dividend total.

Revenue was $125.4 million, down 3% from a year earlier and below analyst estimates of $127.2 million.
Gross profit was $89.6 million, a 71% margin compared with 70% a year earlier.
Cash and equivalents stood at $2.50 billion at the end of September, with $3.40 billion in short-term investments.
Bitcoin Magazine reports that Strategy gathered $21.23 billion in new capital during 2026, of which $5.41 billion was net money from its at-the-market share sales in the third quarter.
According to Bitcoin Magazine, Strategy sold about $431.8 million worth of bitcoin during 2026 to pay for preferred dividends and stock buybacks.
BTC yield, the company's bitcoin-per-share measure, is negative 3.7% for the year, and over that span the bitcoin holding carries a loss of $2.03 billion.
Preferred dividends totaled $419.6 million in the quarter, according to The Defiant.

STRC buybacks, a 12.00% rate and daily dividends

Strategy repurchased 20,980,508 shares of its STRC preferred stock for $2.04 billion, an average of $97.39 per share against a stated amount of $100, according to Bitcoin Magazine. The Defiant said the purchases ran through October 25. CEO Phong Le said the program shows the company's commitment to restoring STRC to health, and about $956.7 million remains under the authorization. Management intends to keep buying while the shares trade below par.

The board left the STRC dividend rate at 12.00%. Shareholders voted on October 28 to switch to daily dividends. STRC moves to daily payments from November 1, while STRF, STRK and STRD make the same change from January 1, 2027.

Strategy also reported dollar reserves of $5.07 billion, made up of a $4.83 billion USD Reserve and $242.4 million of USD Cash. The company says this covers 3.4 years of dividend and interest obligations.

Where the four outlets agree and differ

All four outlets put the quarter's operating gain at about $21 billion. CoinDesk, The Block and Bitcoin Magazine report holdings of 848,517 BTC, and only The Block and Bitcoin Magazine mention the move to daily preferred dividends. CoinDesk rounds the operating figure to $21 billion and The Defiant to $20.9 billion, while The Block and Bitcoin Magazine give $20.91 billion. Only Bitcoin Magazine published full text, so the buyback prices, reserve breakdown and tax comments come from it alone. CoinDesk, The Block and The Defiant are limited here to their headlines and summaries.

Each outlet leads with a different angle. CoinDesk puts Kang's departure first, The Block stresses net income and the dividend change, and The Defiant focuses on the STRC buyback and the preferred dividend bill.

Bitcoin Magazine frames the quarter as a rebound for bitcoin. It also reports a negative yield and a $2.03 billion year-to-date loss on the position. CoinGecko's 30-day change of negative 8.9% shows bitcoin has lost ground since the quarter closed.

Why the results matter beyond one earnings release

The quarter shows how closely Strategy's reported profit tracks bitcoin's price. It also shows how much of its funding runs through preferred stock. Kang said holdings rose 26% year to date, yet the company also reports selling roughly $431.8 million of bitcoin and a negative BTC yield. Holders of the common stock can weigh those figures against the headline profit.

For preferred holders, the practical checks are the STRC price against the $100 stated amount, the daily payment schedule beginning November 1, and the size of the dollar reserve against obligations. According to Bitcoin Magazine, Strategy anticipates that its preferred distributions will be treated as non-taxable returns of capital for at least ten years. The company advises shareholders to consult their own tax advisers.

Open questions to watch

Bitcoin Magazine reported that STRC touched $99.99 on Thursday and that trading at par would reopen funding for bitcoin purchases. Strategy has not confirmed that STRC issuance will restart. Whether the shares reach par, and what the company does if they do, remains unresolved.

None of the outlets names a successor for Kang or explains the timing of his exit. It is also unclear how much of the remaining $956.7 million buyback authorization Strategy will use. Next quarter's mark-to-market result will depend on where bitcoin trades relative to the $75,446 average cost.

Market snapshot

Asset	Price	24h	7d	Market cap
Bitcoin (BTC)	$77,714	-4.5%	-5.9%	$1.56 trillion

CoinGecko data as of 2026-10-30 (UTC).

FAQ

How much operating income did Strategy report for Q3 2026?

Strategy reported $20.91 billion in third-quarter operating income, according to Bitcoin Magazine, and net income of $19.53 billion. Most of the gain came from marking its bitcoin to market.

When do Strategy's preferred stock dividends become daily?

Shareholders voted for the change on October 28. STRC moves to daily payments from November 1, while STRF, STRK and STRD make the same change from January 1, 2027.

How much bitcoin does Strategy hold?

CoinDesk, The Block and Bitcoin Magazine all report holdings of 848,517 BTC. Bitcoin Magazine puts their value at $68.9 billion as of October 23, against an average cost of $75,446.