Shares in Strategy have surged nearly 6% after hours following the Bitcoin treasury company’s announcement of a net income of $2.8 billion for its third quarter. This is a drop from the second quarter, yet it still surpasses analyst expectations.
On Thursday, Strategy reported diluted earnings per share of $8.42 for the quarter ending Sept. 30, exceeding Wall Street forecasts of $8.15.
The company’s $2.8 million income for the quarter marked a significant recovery from a $340.2 million loss the same period last year, although it’s a decline from a record $10 billion net income in Q2.
Shares in Strategy (MSTR) rose by 5.7% after-hours, climbing above $269 after closing the trading session on Thursday down over 7.5% at a six-month low of $254.57.
Strategy maintains the largest Bitcoin (BTC) reserves among public companies, and the cryptocurrency’s over 6.5% rise during the quarter contributed positively to the company’s earnings.
Bitcoin has decreased by 1.7% in the last 24 hours, recovering to $108,500 from a low of under $106,500.
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The decline in Bitcoin’s price and Strategy’s stock has reduced its mNAV to 1.05x, down from a peak of 3.89x in November when Bitcoin surged following Donald Trump’s US election victory, based on StrategyTracker data.
Strategy reported a Bitcoin yield of 26% so far this year, amounting to a $13 billion gain, and reiterated its annual projection of achieving a 30% Bitcoin yield with a net income of $24 billion, assuming Bitcoin reaches $150,000.
During the third quarter, the company acquired 42,706 BTC, increasing its total to 640,031 BTC by Sept. 30. It has since made additional purchases to hold 640,808 BTC as of Sunday, which were acquired at an average cost of $74,032.
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