Saylor Celebrates MSTR Outperformance Over S&P 500, Bitcoin in Q3 Call

Strategy, formerly “MicroStrategy”, just released its Q3 earnings, showing a strong upside momentum for the corporate Bitcoin giant. 

The company reported a near $4 billion in operating income, with around $2.8 billion in net income. Strategy also reported an earnings per share (EPS) rate of $8.42, beating the forecasts of a $7.90 EPS.

The company is also outperforming itself on a yearly basis, as total revenue Y-o-Y came in 10.9% higher, totalling nearly $129 million. While the company is known for its Bitcoin treasury strategy, software subscriptions also grew 65%, while product licenses and subscription services increased by nearly 63%. Despite a drop in support and service revenues, the company held its ground on profitability, maintaining a gross margin north of 70%.

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Outperforming the S&P 500

During a Zoom earnings call, Michael Saylor celebrated the popularity that Bitcoin has gained among not only Wall Street but also the U.S. Government itself. He emphasized the success that Bitcoin ETFs have had this year, reinforcing the idea that institutions will continue to embrace digital assets as a legitimate and strategic asset class.

Saylor also celebrated the fact that Strategy’s common stock (MSTR) has outperformed some of the most established benchmarks in traditional finance, including the S&P 500, and even Bitcoin itself -- since the company announced its transition to a Bitcoin treasury firm. 

As of today, Strategy holds a total of 640,808 BTC, worth over $47 billion. On average, the company spent around $74,000 per Bitcoin held. While not planning to sell, Strategy sits at an unrealized profit of $12.9 billion, of which $2.8 billion was gained in Q3 alone, after Bitcoin ended September on a high note. 

With that said, MSTR slipped by nearly 7% today during open market hours, adding to a streak of negative performance dating back around six months now. However, investors appeared to react favorably to the earnings report, as MSTR regained 4.16% after hours. 

Most stocks bled today, as the S&P 500 saw a 1% dip, while the 
Nasdaq Composite also fell by 1.57%. As of now, investors are likely weighing uncertainty after Federal Reserve Chair Jerome Powell signaled a more cautious stance on future rate cuts.