Strategy (MSTR) will post a profit for the second quarter in a row in the third quarter thanks to a rise in the price of bitcoin (BTC). That would again qualify the company for potential S&P 500 inclusion.
According to Jeff Walton, Chief Risk Officer of Strive, Strategy will have earned about $2.9 billion, or $10 per share thanks to bitcoin's move from about the $107,000 level to $114,000 at quarter's end. Over the past four quarters, MSTR will have earned roughly $22.80 per share.
The analysis factors in an estimated deferred tax liability of $970 million, leaving a net income estimated at $2.9 billion. The analysis concludes with an estimated trailing twelve-month earnings per share (EPS) of $22.8, reflecting positive EPS in Q2 and an estimated positive EPS in Q3 2025 ($32.6 and $10.1, respectively) which offset negative results in Q4 2024 and Q1 2025.
While positive trailing twelve-month EPS is one requirement for S&P 500 inclusion, other criteria include a positive latest quarter, more than 50% public float, and average daily trading volume above 250,000 shares — all of which MSTR has. The S&P 500 committee, though, is under no requirement to add a company just because it meets those criteria.
The fourth quarter 2025 S&P 500 rebalancing is scheduled to take effect after the market closes on Dec. 19.
STRC Increased Dividend Rate
Beyond potential S&P 500 inclusion, Strategy increased its dividend rate on its perpetual preferred stock STRC from 10% to 10.25% and declared cash dividends payable Oct. 31, with guidance that rates will be evaluated using the five-day VWAP of STRC prior to the final trading day of each month, according to analyst Ben Werkman. STRC currently priced at $97 (within the $95 to $98.99 band), this resulted in a 25 basis point increase, and Strategy has indicated it will continue raising the rate to bring STRC closer to its $100 par value.
MSTR shares are higher by 2.9% premarket alongside a 3% rise in the price of bitcoin to $116,700.
Disclaimer: This article represents only the personal views of the author and does not represent the position and views of this platform. This article is for information sharing only and does not constitute any investment advice to anyone. Any disputes between users and authors are unrelated to this platform. If the articles or images on the webpage involve infringement, please provide relevant proof of rights and identity documents and send an email to support@aicoin.com. The relevant staff of this platform will conduct an investigation.