MicroStrategy Q3 Net Income Hits $2.8B Amid Bitcoin Surge

MicroStrategy (MSTR) has posted a remarkable turnaround in its third-quarter results. It reported a net income of $2.8 billion, a sharp recovery from last year’s losses. The surge comes as the company’s massive Bitcoin holdings soared in value. It is benefiting from the new fair value accounting standards that reflect real-time market prices of its crypto assets.

Bitcoin Gains Drive Record Earnings

For Q3 2025, MicroStrategy reported operating income of $3.9 billion. This included $3.9 billion in unrealized gains from its Bitcoin portfolio. The company’s net income hit $2.8 billion, or $8.43 per diluted share. Compared with a net loss of $340.2 million during the same period last year.

As of October 26, the firm held 640,808 BTC, representing more than 3% of all Bitcoin ever mined. These holdings were acquired at an average cost of $74,032 per Bitcoin. With a total market value of around $70.9 billion at the time of reporting. Despite its strong earnings, MicroStrategy’s stock dipped earlier in the quarter. But rebounded in after-hours trading following the release.

Strong Financial Position Despite Volatility

MicroStrategy’s year-to-date performance reflects strong capital discipline and market confidence. The company raised $19.8 billion in 2025 to expand its Bitcoin reserves. This is pushing its market cap to $83 billion and enterprise value to $98 billion. The company’s BTC yield reached 26% year-to-date, with a total Bitcoin gain of 116,555 BTC. 

It continues to manage $8.2 billion in convertible debt, with a weighted average maturity of 4.4 years. Annual interest and dividend obligations stand at $689 million. It is supported by a 10.5% annual dividend rate effective November 1, 2025. However, its heavy exposure to Bitcoin introduces significant volatility. Any major drop in Bitcoin’s price could weigh heavily on future results.

Accounting Shift Boosts Transparency

The adoption of fair value accounting has transformed how MicroStrategy reports its crypto holdings. This change added roughly $18 billion to the company’s digital assets. This improves transparency for investors and strengthens shareholder equity. Executives reaffirmed the company’s full-year guidance. Which is targeting $34 billion in operating income and $24 billion in net income for 2025. These projections assume Bitcoin maintains an average price of $150,000 by year-end.

Outlook: High Risk, High Conviction

While the results highlight MicroStrategy’s dominance as a corporate Bitcoin treasury. They also underline its dependence on Bitcoin’s price trajectory. The company’s strategy offers massive upside potential if Bitcoin continues to climb. But comes with significant downside risks if the market reverses. Still, MicroStrategy’s CEO, Michael Saylor, remains unwavering in his conviction that Bitcoin is the ultimate store of value. The company’s record-breaking quarter shows that for now, that bet is paying off.