Strategy’s Surprising Q3 Profit: S&P 500 Here We Come?

by

Markets

What to know:

  • Strategy, like a phoenix, rises again, posting its second consecutive profitable quarter thanks to Bitcoin‘s magic. 🦸‍♂️💸
  • They’re checking all the boxes for S&P 500 inclusion-whether or not they make the cut is now a game of committee roulette. 🎰
  • The company decided to give STRC preferred stock a nice little 25 basis point boost, reaching 10.25%. Because why not? 💰📈

Strategy (MSTR) is riding high into the third quarter, posting profits for the second time in a row, all thanks to the wild, untamed beast that is Bitcoin. 📉📈 Who knew a cryptocurrency could make or break your entire financial outlook? Turns out, if you bet on Bitcoin, you might just get rewarded with some serious S&P 500 attention.

According to Jeff Walton, the Chief Risk Officer at Strive, MSTR is expected to pull in a whopping $2.9 billion (yes, billion with a “B”) or $10 per share-thank you very much, Bitcoin, for climbing from $107,000 to $114,000. Over the past year, MSTR has been flaunting about $22.80 per share in earnings. Look at them go! 🏃‍♂️💨

The analysis, of course, accounts for a small detail: a deferred tax liability of $970 million. But, don’t worry, MSTR is still set to pocket that $2.9 billion, leaving an estimated trailing twelve-month EPS of $22.8. Fancy! What about Q3 2025? We’re looking at $32.6 and $10.1 per share, respectively-after a couple of minor hiccups in the previous quarters. You know, just a few bumps on the road. 🚗💨

Now, let’s talk about what matters: the S&P 500. For inclusion, a company needs more than just good EPS; it needs a positive latest quarter, at least a 50% public float, and an average daily trading volume above 250,000 shares. Guess what? MSTR is all over that. But don’t get too excited just yet-being eligible doesn’t guarantee a golden ticket. The S&P committee might still decide to be, well, picky. 🎫🙄

The fourth quarter 2025 S&P 500 rebalancing kicks in after the market closes on Dec. 19. Mark your calendars, folks! 🗓️

STRC Increased Dividend Rate

In other news, Strategy is treating its investors like royalty, raising the dividend rate on its perpetual preferred stock, STRC, from 10% to 10.25%. 🎉 What’s that? You want more cash? Sure! STRC is now priced around $97 (right in the sweet spot of $95 to $98.99), and Strategy’s already hinting that the rate might keep climbing. After all, why settle for a 10% dividend when you can add just a little extra to that? 💸💡

It gets better-cash dividends will be payable on Oct. 31. Set your reminder and get ready for that sweet payout. 🍬📅

MSTR shares are up 2.9% in premarket trading, riding high on a 3% Bitcoin surge to $116,700. 🚀💎

Read More

2025-10-01 15:52