Strategy posted a profit in the third quarter, compared with a loss a year earlier, as improving sentiment around the cryptocurrency sector benefited the largest corporate holder of bitcoin, sending its shares up nearly 4% after the bell.
Until the fourth quarter of 2024, Strategy could only record impairment losses when bitcoin's value fell below its purchase price, while gains from price increases remained unrealized unless the cryptocurrency was sold.
U.S. President Donald Trump's focus on the digital asset sector and his pledge to make America the global hub for cryptocurrencies, combined with strong ETF inflows, have helped bitcoin to scale multiple record highs in 2025.
Strategy held 640,808 bitcoins as of October 26, at a total cost of $47.44 billion, or $74,032 per bitcoin. The world's biggest cryptocurrency currently trades at around $107,833.
Rising bitcoin prices tend to appreciate Strategy's stock, enabling the company to raise additional capital for reinvestment into the cryptocurrency, creating a self-reinforcing cycle.
The increase in bitcoin's value lifts net income at Strategy's buy-and-hold treasury model, which has inspired several other companies to adopt similar approaches.
Strategy's net profit was $2.78 billion, or $8.42 per share, for the three months ended September 30, compared with a loss of $340.2 million, or $1.72 per share, a year earlier.
Shares of the company have lost about 12% so far in 2025, while bitcoin prices have risen 14.5%.