In a recent financial disclosure, two of the crypto industry’s giants, Coinbase (COIN) and Strategy (MSTR), reported significant gains in their third-quarter (Q3) results.
Coinbase Surges Past Profit Expectations
Coinbase exceeded analysts’ expectations for its Q3 profit, buoyed by increased volatility in digital assets that elevated trading volumes on its platform. The company reported a transaction revenue of $1.05 billion for the quarter, a substantial rise from $572.5 million during the same period last year.
Additionally, the cryptocurrency exchange recorded a net income of $432.6 million, translating to $1.50 per share, compared to just $75.5 million, or $0.28 per share, a year prior. Analysts had projected a profit of $1.06 per share, according to Reuters.
Coinbase also completed its acquisition of Deribit in the third quarter. Alesia Haas, the company’s finance chief, noted during a conference call that Deribit commands over 75% of the market share for options, primarily outside the US.
This acquisition opens pathways for Coinbase to expand its options market within the US. As part of its broader strategy, Coinbase also highlighted its commitment to accelerating payments through stablecoin adoption, citing favorable policy trends and growing interest from financial institutions and corporations.
David Bartosiak, a stock strategist at Zacks Investment Research, remarked, “Coinbase is cash-rich and growth-ready,” emphasizing that the company is evolving beyond merely trading cryptocurrencies to establishing the infrastructure for a new financial internet.
Largest Corporate Bitcoin Holder Posts $2.78 Billion Net Profit
Meanwhile, Strategy, previously MicroStrategy, reported profits in the third quarter after experiencing a loss the previous year. This positive sentiment surrounding the cryptocurrency sector has benefited the company, which is the largest corporate Bitcoin (BTC) holder.
As of October 26, the company held 640,808 Bitcoin, with a total acquisition cost of $47.44 billion, averaging $74,032 per BTC. With the market’s leading crypto currently trading around $107,400 when writing, the company’s holdings are positioned for significant appreciation.
Strategy’s net profit for the three months ended September 30 was reported at $2.78 billion, or $8.42 per share, contrasting sharply with a loss of $340.2 million, or $1.72 per share, a year earlier. However, it’s worth noting that Strategy’s shares have declined 12% so far in 2025, even as Bitcoin prices have risen by 14.5%.
COIN stocks closed Thursday’s trading session with a 3% surge toward $328 on the wake of the financial disclosure. Similarly, Strategy’s shares climbed nearly 4% following its earnings report toward the $254 mark.
Featured image from DALL-E, chart from TradingView.com
Bitcoin's action of late hasn't been great, but the price did rise nearly 7% in the three months ended September 30, boosting reported profits for Michael Saylor's firm.
At Money 20/20 in Las Vegas, Michael Saylor gave a familiar, bullish sentiment for Bitcoin, predicting it could hit $150,000 by the end of 2025 and potentially reach $1 million within the next four to eight years.
Speaking to CNBC, Saylor outlined both the industry-wide shifts in digital assets and the evolving investment products his company is offering, framing them as key drivers for institutional adoption.
Saylor highlighted a milestone for Strategy: the company recently received its first credit rating from S&P — B-minus — making it the first Bitcoin-focused treasury company to be rated.
“It’s a very auspicious start because it represents institutional adoption of Bitcoin-backed credit,” he said, noting that this rating opens the door to hundreds of billions, if not trillions, of dollars in capital that previously would not invest in unrated instruments.
Strategy for different investor profiles
Strategy has a 70% chance of joining the S&P 500 before year-end, according to 10X Research. Its upcoming Q3 2025 earnings, expected Thursday, could show a $3.8 billion gain from fair-value Bitcoin accounting.
Strike, Strife, Stride, and Stretch offer combinations of principal protection, dividends, and yields from roughly 8% to 12.5%, each tailored to different investor profiles — from those seeking amplified Bitcoin exposure to conservative investors needing low-volatility returns.
Uniquely, these instruments generate tax-free dividends structured as a return of capital, giving investors an effective yield comparable to 16–20% on a tax-equivalent basis. “A treasury company built on Bitcoin is the most tax-efficient fixed income generator in the world,” Saylor said.
Saylor also underscored the growing acceptance of Bitcoin within traditional finance. Major U.S. banks, including JP Morgan, Bank of America, and BNY Mellon, are now beginning to offer loans collateralized by Bitcoin, while some are moving toward custodying Bitcoin outright.
“The train has left the station,” Saylor said. “Everybody’s moving forward.”
He argued that the evolving infrastructure, supported by pro-crypto policies from the White House, Treasury, SEC, and CFTC, has created “probably the best 12 months in the history of the industry.”
Saylor sees Bitcoin at $150,000 by EOY
Looking at the broader digital economy, Saylor emphasized the dual role of Bitcoin and digital assets. Bitcoin serves as a long-term store of value — digital capital — while stablecoins and other tokenized currencies act as medium-of-exchange instruments in an increasingly AI-driven financial landscape.
Regarding market trends, Saylor acknowledged the volatility in Bitcoin has moderated as the industry matures, offering more derivatives and hedging instruments.
Analysts covering Strategy and the Bitcoin sector, he said, largely expect the cryptocurrency to reach $150,000 by year-end, with longer-term potential for $1 million per coin.
Over the next two decades, Saylor forecasts Bitcoin could appreciate by roughly 30% annually.
The company is expected to report another quarterly profit on Thursday, possibly reviving expectations for S&P 500 inclusion, 10x Research's Markus Thielen argued.
For the first time in financial history, a major credit rating agency has formally evaluated a company built on a bitcoin-backed credit model. In news covered by Bitcoin Magazine, the S&P Global Ratings has assigned Strategy Inc (MSTR) a ‘B-’ Issuer Credit Rating with a Stable outlook, recognizing not just the company, but the emergence of Bitcoin as collateral inside the credit system. This marks a watershed moment for corporate finance.Bitcoin-backed credit is no longer theoretical. It is now a rated financial reality.
Why This Moment Matters
Until now, Bitcoin had been accepted by equity markets, ETFs, and corporate treasury conversations — but credit markets remained untouched. Credit markets are where legitimacy is ultimately decided because they determine who can borrow, at what cost, and against which assets.
By rating Strategy Inc, S&P has implicitly acknowledged:
Bitcoin can underpin structured debt and preferred equity.
A bitcoin-backed credit strategy can be modeled, rated, and priced using traditional frameworks.
Bitcoin is shifting from speculative asset to recognized collateral within corporate capital structures.
This is not a marketing milestone — it is a structural one. Bitcoin has entered the language of risk-adjusted return, yield, and covenants.
How S&P Interpreted Strategy’s Bitcoin-Backed Capital Model
The rating is speculative grade, but the Stable outlook is critical. It signals S&P’s belief that Strategy can continue to service obligations and access capital markets without selling its Bitcoin reserves — a foundational principle of bitcoin-backed credit.
S&P’s analysis mentions several possible weaknesses:
High concentration of assets in Bitcoin
Low U.S. dollar liquidity and negative risk-adjusted capital under S&P’s methodology
Currency mismatch: long Bitcoin, short U.S. dollar debt obligations
However, they also credited Strategy with unique structural strengths:
No near-term debt maturities before 2027–2028
Proven access to capital markets — both equity and debt
A capital stack purpose-built to accumulate Bitcoin without diluting shareholders
Active liability management via convertible debt and preferred stock instruments
In short, S&P is signaling that bitcoin-backed credit can function — if managed with discipline.
Implications for the S&P 500 and Institutional Legitimacy
Strategy Inc met the S&P 500 inclusion criteria in profitability and market capitalization but was passed over in 2024, widely believed to be due to its Bitcoin-heavy balance sheet. That decision now appears less defensible.
With a formal credit rating, the company shifts from “unrated anomaly” to “rated issuer.” For institutional capital, that distinction matters.
Index committees can now reference a risk rating — not just a narrative.
Treasury teams and insurers can benchmark exposure to bitcoin-backed credit against traditional corporate debt.
This increases (not guarantees) the probability of future index inclusion and passive capital flows.
Bitcoin entering equity indices begins with Bitcoin entering the credit models behind them.
Bitcoin-Backed Credit: The Ideal State of Treasury Strategy
This rating does more than validate Strategy — it validates the architecture of bitcoin-backed credit as the superior evolution of corporate treasury management.
Phase 1 was equity-funded Bitcoin accumulation — high growth but shareholder dilution. Phase 2 introduced convertible debt and preferred equity — allowing companies to acquire Bitcoin through capital markets rather than operating earnings. Phase 3, now underway, is full institutional recognition of bitcoin-backed credit — rated, benchmarked, and capable of scaling.
This is the endgame:
Use capital markets to borrow in fiat
Use proceeds to acquire Bitcoin
Service liabilities without selling reserves
Increase Bitcoin-per-share over time, without issuing new common stock
With S&P formally rating Strategy’s issuer credit, this model moves from innovation to infrastructure.
Why Corporate Finance Leaders Need to Pay Attention
This rating does not compel companies to adopt Bitcoin. But it removes the claim that Bitcoin cannot be integrated into traditional credit systems.
From now on:
Bitcoin can be factored into risk-weighted capital models and treasury policy.
Credit and liquidity committees must understand how bitcoin-backed credit affects financing costs, refinancing risk, and balance sheet leverage.
Investors can now compare Bitcoin-based capital structures against other high-yield or hybrid debt strategies.
Boards can no longer dismiss Bitcoin as “unratable” or “unclassified.”
A New Chapter for Corporate Finance and Capital Markets
What makes this moment different isn’t that another institution “acknowledged” Bitcoin. That’s happened before with ETFs, GAAP accounting changes, and treasury allocations.
What’s different is where the recognition has now occurred: Not in equity markets. Not in payment networks. But in credit — the foundation of corporate finance and monetary systems.
When a credit rating agency like S&P evaluates a company built on Bitcoin, it does three things that have never happened before:
It forces Bitcoin into risk models normally reserved for banks, sovereigns, and investment-grade corporations.
It legitimizes bitcoin-backed credit as a structure that can be analyzed, refinanced, and scaled — not dismissed as speculative.
It signals to other corporates and lenders that they must now understand Bitcoin not as an investment, but as collateral.
This rating does not mean the model is risk-free. It means the model is real enough to underwrite, stress test, and lend against.
That is the real inflection point — not that S&P approved of Bitcoin, but that they were forced to measure it.
Disclaimer: This content was written on behalf of Bitcoin For Corporations. This article is intended solely for informational purposes and should not be interpreted as an invitation or solicitation to acquire, purchase or subscribe for securities.
S&P Global Ratings assigned a ‘B-’ issuer credit rating to bitcoin-juggernaut Strategy, reflecting the company’s heavy concentration in bitcoin and limited dollar liquidity. The outlook is stable.
S&P said the rating reflects Strategy’s “high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low U.S. dollar liquidity.” The company reported $8.1 billion in pre-tax earnings in the first half of 2025, almost entirely from appreciation in the value of its bitcoin holdings.
The firm said in their release that while Strategy’s balance sheet is dominated by bitcoin, its management has prudently staggered debt maturities and maintained flexibility by financing primarily with equity.
In other words, this rating means Strategy can meet debt obligations for now but faces significant default risk if market conditions worsen.
Strategy — now effectively a bitcoin treasury company — raises capital through equity and debt issuances to purchase and hold bitcoin. Its securities give investors varying exposure to bitcoin across its capital structure.
Just today, founder and former CEO Michael Saylor announced a purchase of 390 BTC between October 20 and October 26, spending approximately $43.4 million at an average price of $111,053 per Bitcoin. The firm still operates a small AI-powered analytics business, though it remains roughly breakeven.
JUST IN: S&P Global Ratings has rated a #Bitcoin treasury company for the first time — Michael Saylor’s Strategy pic.twitter.com/oP4j5UIJlj
This S&P rating is the first-ever rating of a Bitcoin Treasury Company by a major credit rating agency.
According to S&P, Strategy’s risk-adjusted capital ratio was significantly negative as of June 30, 2025, because the agency deducts bitcoin assets from equity in its calculation.
Strategy reported $8.1 billion in pre-tax earnings in the first half of 2025. Operating cash flow during the period was negative $37 million.
The agency cited several key risks, including a currency mismatch between Strategy’s bitcoin-denominated assets and dollar-denominated obligations such as interest, debt principal, and preferred dividends.
S&P also pointed to cybersecurity risks given the company’s reliance on custodians to safeguard its bitcoin.
Strategy holds bitcoin valued at roughly $70 billion, against $8 billion in convertible debt, much of which matures beginning in 2028. Annual preferred dividends total about $640 million, which the company plans to fund through additional stock and preferred equity issuance.
While Strategy’s access to capital markets remains a core strength, S&P warned that a sharp decline in bitcoin prices or loss of investor confidence could impede its ability to refinance debt or pay dividends, potentially leading to bitcoin sales “at severely depressed prices.”
S&P said the rating could be downgraded if access to markets weakens or debt management risks rise. An upgrade is unlikely unless the company improves its U.S. dollar liquidity or reduces reliance on convertible debt.
In an interview with Bitcoin Magazine, Saylor described an “endgame” in which Strategy accumulates a trillion-dollar bitcoin balance sheet, growing 20–30% annually, and uses it as the foundation for a new global credit system.
At the core of his vision is scale: with enough BTC on corporate balance sheets, the long-term appreciation of Bitcoin — historically around 21% annually — would supercharge the capital base.
On top of that, Saylor sees an opportunity to issue bitcoin-backed credit at yields significantly higher than traditional fiat-based debt, potentially two to four percentage points above corporate or sovereign rates.
He argued that over-collateralization could make this system safer than even AAA-rated debt, while simultaneously fueling broader financial growth.
Saylor’s vision extends beyond credit markets. As Bitcoin becomes embedded in corporations, banks, insurers, and sovereign wealth funds, public equity indexes could gradually become indirect bitcoin vehicles.
This, he says, would benefit equity markets and corporate balance sheets while introducing higher yields and greater transparency into financial products.
The implications are broad: savings accounts could yield 8–10% instead of near-zero, money market funds could be denominated in bitcoin, and insurance products could be reimagined around bitcoin collateral.
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