MicroStrategy (MSTR) presented its anticipated MicroStrategy Q3 2025 results this Wednesday, October 29th. The business intelligence firm surprised the market by reporting earnings per share (EPS) of $8.42. However, this robust performance did not come from its software business, but from unrealized accounting gains (mark-to-market) on its massive Bitcoin treasury. The information was detailed in its official quarterly earnings report for shareholders.
The key driver in these accounts was the recognition of $1.1 billion in profits from the revaluation of its digital assets. According to the report, MicroStrategy now holds a total of 271,069 BTC. The company has maintained a consistent acquisition strategy. Thus, its average purchase price stands at $36,016 per coin. At the quarter’s end, the market value of this reserve amounted to $18.39 billion. This contrasts significantly with its original cost basis of $9.76 billion.
The Bitcoin Strategy Eclipses the Software Business
These financial results highlight how the company’s bet on Bitcoin has overshadowed its primary commercial activity. On the other hand, revenues from MicroStrategy’s traditional software business showed a notable contraction during the period. The software division posted revenues of $114.3 million. This figure represents a 9.1% year-over-year decline, concerning some analysts about the health of its core operation.
Furthermore, it is crucial to understand that these $8.42 earnings per share are largely “on paper.” They are possible thanks to the new FASB (Financial Accounting Standards Board) accounting rules. These recently adopted rules allow companies to value their cryptocurrency holdings at market price (mark-to-market) each quarter, rather than recording them as intangible assets that could only be impaired.
Is MicroStrategy Now a De Facto Bitcoin ETF?
The release of the MicroStrategy Q3 2025 results reinforces the company’s position as an indirect investment vehicle for Bitcoin. For many investors in traditional markets, buying MSTR stock is seen as a regulated way to gain exposure to BTC’s price. Therefore, its stock performance is intrinsically linked to the crypto-asset’s daily volatility.
Likewise, this strategy validates the thesis of its founder and executive chairman, Michael Saylor. Saylor has repeatedly defended the use of Bitcoin as a superior treasury reserve asset compared to cash or gold. This quarter’s accounting success could encourage other corporations to consider similar moves, although volatility remains a significant risk.
MicroStrategy’s duality, as both a software company and a Bitcoin holder, continues to define its investment profile. Analysts and the market will be watching closely to see if the firm uses its operating cash flows, or new financing, to continue its Bitcoin acquisition policy. Future movements in BTC’s price will inevitably dictate the company’s upcoming quarterly results.
