Strategy Reports Q3 Profit, Eyes S&P 500 Inclusion
Strategy's Financial Performance and S&P 500 Inclusion Potential
- Strategy (MSTR) is expected to report a profit for the second consecutive quarter in Q3, aided by an increase in the price of bitcoin (BTC).
- The company anticipates earning approximately $2.9 billion, or $10 per share, due to bitcoin's rise from $107,000 to $114,000 at the quarter's end.
- The estimated deferred tax liability stands at $970 million, resulting in a net income of around $2.9 billion.
- MSTR's trailing twelve-month earnings per share (EPS) are projected at $22.8, with positive EPS recorded in both Q2 and Q3 2025 ($32.6 and $10.1, respectively).
- S&P 500 inclusion criteria include positive trailing twelve-month EPS, more than 50% public float, and average daily trading volume above 250,000 shares, all of which MSTR meets.
- The S&P 500 committee will decide on potential additions during the fourth quarter 2025 rebalancing, effective after Dec. 19 market close.
Dividend Rate Increase for STRC
- Strategy has increased the dividend rate on perpetual preferred stock STRC from 10% to 10.25%.
- Cash dividends are declared payable on Oct. 31, with future rates evaluated based on the five-day VWAP of STRC before each month's final trading day.
- STRC is currently priced at $97, within the $95 to $98.99 range.
MSTR shares have risen by 2.9% premarket, coinciding with a 3% increase in the price of bitcoin to $116,700.