MicroStrategy (MSTR) has announced its second consecutive profitable quarter in Q3 2025, driven primarily by substantial gains from bitcoin (BTC) price appreciation. This sustained profitability maintains the company's eligibility for potential inclusion in the prestigious S&P 500 index.
According to financial analysis, MicroStrategy generated approximately $2.9 billion in Q3 earnings, equivalent to $10 per share, as bitcoin surged from $107,000 to $114,000 during the quarter. When combined with previous quarters, MSTR has achieved trailing twelve-month earnings of $22.80 per share.
The comprehensive financial assessment accounts for an estimated $970 million deferred tax liability, resulting in projected net income of $2.9 billion. The analysis reveals positive EPS in both Q2 2025 ($32.6) and Q3 2025 ($10.1), effectively offsetting earlier quarterly losses and producing a robust trailing EPS of $22.8.
While meeting the S&P 500's profitability requirements through positive trailing EPS and latest quarter results, MicroStrategy also satisfies other critical criteria including sufficient public float and daily trading volume exceeding 250,000 shares. The S&P 500 committee's final decision remains discretionary despite these qualifications.
In additional corporate developments, MicroStrategy increased its STRC perpetual preferred stock dividend from 10% to 10.25%, with cash distributions scheduled for October 31. The company will continue evaluating dividend rates based on STRC's five-day VWAP preceding month-end, currently trading at $97 with targets toward the $100 par value.
Market response has been positive, with MSTR shares advancing 2.9% in premarket trading alongside bitcoin's 3% climb to $116,700.