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Net income of $19.53 billion, or diluted earnings per share of $44.75, surged past Wall Street expectations.
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The company also announced that Andrew Kang will step down as Executive Vice President and Chief Financial Officer from Nov. 5.
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On Thursday, Binance said it is investigating a potential hack of the company, in which more than $5.7 billion was drained from user wallets.
Shares of Strategy Inc. (MSTR) slumped more than 6% in overnight trading late Thursday after the company’s third-quarter (Q3) revenue missed Wall Street expectations and concerns mounted over the departure of its chief financial officer.
Meanwhile, a security incident at Binance, the world’s largest crypto exchange, also sent ripples across the industry.
Bitcoin (BTC) prices fell 5% to $76,754.64, weighing on the stock.
Strategy’s Q3 Results Mixed
Strategy posted $125.4 million in total revenue for the quarter, down 3% year-over-year, and also below analysts’ expectations.
However, net income of $19.53 billion, or diluted earnings per share of $44.75, surged past Wall Street expectations of $22.89 per share. It was also significantly higher than the previous comparable quarter’s net income of $2.79 billion, or $8.42 per share.
The income was primarily driven by a massive $20.91 billion gain on its digital asset holdings.
As of Oct. 25, Strategy held a total of about 848,517 BTC, with a market value of $68.90 billion, and the average cost per BTC at approximately $75,446.
CFO Transition Raises Concerns
The company also announced that Andrew Kang will step down as Executive Vice President and Chief Financial Officer from Nov. 5, but will continue in an advisory capacity through Dec. 31.
President and CEO Phong Le is expected to serve as the principal financial officer from Jan. 1, 2027, while Reza Virasteh, Strategy’s current Executive Vice President of Operations, will take over as Executive Vice President and CFO, serving as co-principal financial officer alongside Le, who will retain responsibility for the financial management of the company’s bitcoin strategy.
Cryptocurrency Hack Adds To Negative Sentiment
On Thursday, Binance said it is investigating a potential hack, possibly the biggest crypto hack in history, in which more than $5.7 billion was drained from user wallets. Multiple cryptocurrency firms, including Circle and Tether, said they are freezing more than $2.5 billion in funds.
