MSTR parent company Strategy posted third-quarter net income of $19.53 billion, but its year-to-date per-share holdings metric, calculated using the company’s own definition, fell to −3.7%.
The earnings report highlights a disconnect: the company holds more bitcoin, but the share represented by each common shareholder may not have grown. According to earnings data cited in public reports, as of October 25, Strategy held approximately 848,500 bitcoins, up 26% from the beginning of the year. Digital asset gains for the quarter reached $20.91 billion, accounting for nearly all of its earnings.
But the −3.7% figure uses a fully diluted share count. It is not the return on MSTR stock, nor does it fully reflect claims such as preferred shares. These figures are currently based on reports citing the earnings release and should be verified against the company’s disclosures. The key question is whether new financing can reverse the decline in bitcoin holdings per share while covering dividends and interest.
If total holdings keep growing while each share’s portion keeps shrinking, should the market still pay a premium for “buying more and more”?
The earnings report highlights a disconnect: the company holds more bitcoin, but the share represented by each common shareholder may not have grown. According to earnings data cited in public reports, as of October 25, Strategy held approximately 848,500 bitcoins, up 26% from the beginning of the year. Digital asset gains for the quarter reached $20.91 billion, accounting for nearly all of its earnings.
But the −3.7% figure uses a fully diluted share count. It is not the return on MSTR stock, nor does it fully reflect claims such as preferred shares. These figures are currently based on reports citing the earnings release and should be verified against the company’s disclosures. The key question is whether new financing can reverse the decline in bitcoin holdings per share while covering dividends and interest.
If total holdings keep growing while each share’s portion keeps shrinking, should the market still pay a premium for “buying more and more”?