Strategy Posts $21B Q3 Gain, Buys $29M in BTC, Repurchases $176M in STRC
Strategy bought 334 BTC for $28.7 million between Oct. 1–4, lifting its treasury to a record 848,000 BTC, and repurchased $176.3 million of its Stretch preferred stock across late September and early October. In its quarterly filing the firm reported a $20.91 billion fair-value gain on digital assets for Q3, with $1.88 billion of deferred tax expense tied to that mark.
Why It Matters
The filing highlights Strategy’s continued accumulation of Bitcoin alongside active balance-sheet management via preferred-stock buybacks, while the large fair-value gain and associated deferred tax show how mark-to-market accounting can produce substantial reported profitability without corresponding cash realizations.
Key Facts
- Bitcoin purchased Oct. 1–4: 334 BTC for $28.7 million
- Average price paid for those coins: $85,838.80 per BTC
- Total Bitcoin holdings: 848,000 BTC (new record)
- STRC repurchases: 1,033,168 shares for $102.6M in late Sept. and 740,634 for $73.7M in early Oct.; $176.3M total
- Preferred buyback program remaining capacity: $547.2 million left
Strategy acquired 334 BTC between Oct. 1 and Oct. 4, spending $28.7 million at an average price of $85,838.80 per coin. That purchase took the company’s Bitcoin treasury to 848,000 BTC, a record level that surpasses its prior June high. The filing notes the company did not buy any Bitcoin in the final three days of September.
Alongside the small BTC purchase, Strategy repurchased a substantial amount of its Stretch (STRC) preferred stock. It bought back 1,033,168 STRC shares for $102.6 million in late September and added 740,634 shares for $73.7 million in the first four days of October, totaling $176.3 million. Of that amount $154.1 million came from the company’s USD Cash balance and $22.2 million from interest earned on cash and short-term investments; the buyback program still has $547.2 million of capacity remaining.
The company also sold 92,894 MSTR shares for $15.7 million in net proceeds, and applied those proceeds to Bitcoin purchases alongside $13 million drawn from USD Cash. Strategy’s dollar balances are split between a USD Reserve of $4.88 billion, which is reserved for preferred dividends and debt interest, and USD Cash of $833.4 million for general purposes including BTC acquisition. The filing shows $142.5 million was drawn from the reserve in the week to Oct. 4 to cover dividends and interest.
For the third quarter Strategy reported a $20.91 billion gain on its digital-asset holdings under fair-value accounting; that figure reflects price appreciation during the quarter rather than realized sales, and carries a $1.88 billion deferred tax expense. The company’s average cost basis across its entire Bitcoin position is $75,440.70 per coin, meaning the latest small purchases were made above that average cost. The filing and buyback activity underline the firm’s dual focus on growing its Bitcoin treasury while managing its capital structure and preferred-stock obligations.
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Original source: Decrypt