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Strategy’s Q3 profit dropped to $2.8 billion, down from $10 billion last quarter.
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Bitcoin accumulation slowed, with holdings now at 640,808 BTC.
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The firm raised its preferred stock dividend to 10.5% to attract investors.
Earnings Dip Amid Market Weakness
Bitcoin-treasury giant Strategy (ticker MSTR) reported a sharp decline in quarterly profit as Bitcoin’s rally cooled. The company’s profit fell to $2.8 billion, with shares closing at a six-month low before rebounding slightly post-earnings.
Valuation Premium at 18-Month Low
The firm’s mNAV multiple — a ratio comparing enterprise value to Bitcoin holdings — fell to 1.2x, the lowest since March 2023. Strategy’s stock traded near $254, while Bitcoin hovered around $107,000, down 15% from its October peak.
Preferred Stock Strategy and Bitcoin Holdings
Strategy continues to fund its Bitcoin purchases through high-yield preferred stocks, including STRC, STRF, and STRK. The firm raised STRC’s dividend to 10.5%, offsetting lower market premiums. Despite slowing accumulation, it remains the largest public Bitcoin holder, with nearly $69 billion in BTC.
