Michael Saylor’s bitcoin treasury company Strategy (MSTR) is investigating opportunities in credit securities across various international locations, aiming to establish itself as the leading global credit issuer.
“We are also diligently working on credit securities in international markets, positioning Strategy to lead in global credit issuance,” stated Phong Le, president and CEO, during the company’s Q3 earnings call on Thursday.
This initiative highlights Strategy’s aspiration to extend its financial reach beyond the U.S. and become a front-runner in other markets for bitcoin-backed and digital asset-based credit products.
In Q3, Strategy reported operating income of $3.9 billion and net income of $2.9 billion, a significant turnaround from the losses of $432.6 million and $340.2 million incurred in the same quarter last year. Earnings per share stood at $8.42, up from $1.72 in Q3 2024.
For the first nine months of 2025, Strategy’s operating income reached $12 billion, contrasting with a loss of $0.8 billion the previous year, while net income surged to $8.6 billion from a $0.5 billion loss, and earnings per share jumped to $27.71 from -$2.71.
The company faces annual obligations of $689 million in dividends and interest, which includes $522 million from cumulative preferreds (STRF $124 million, STRK $111 million, STRC $294 million) and $125 million from non-cumulative STRD.
Convertible bonds amount to $8.2 billion in notional value with an average interest rate of 0.421%, resulting in approximately $35 million in annual interest, with 39% of this debt currently in the money while the 2029 and 2030 zero-coupon tranches are out of the money ($5 billion) until their 2028 put dates; these notes collectively hold a market value of $10.6 billion.
CEO Phong Le reiterated the objective of eliminating convertible debt by 2029, a point acknowledged by S&P in its credit rating of Strategy, assigning the company a B- rating.
Executive Chairman Michael Saylor emphasized that the company’s multiple to net asset value (mNAV) hovers around 1.25, the lowest since early 2024. He attributes this compression to various factors, including a stabilizing bitcoin market with less volatility, the success of IBIT, and the increasing role of derivatives that mitigate volatility. However, Saylor anticipates that the expansion of digital credit through preferred equities will enhance mNAV over time.
Year-to-date, Strategy has raised $20 billion across six different securities (common stock, perpetual preferreds, and convertible debt), approaching the $22.6 billion raised in 2024.
On the regulatory front, the firm clarified that according to interim guidance from the Treasury and IRS issued on Sept. 30, it does not expect to face the Corporate Alternative Minimum Tax on unrealized bitcoin gains.
For the second consecutive quarter, Strategy (MSTR) has qualified for potential inclusion in the S&P 500.
MSTR shares are currently up 6% in pre-market trading at $270 each.
