Strategy projected a $20.91 billion gain on its bitcoin holdings for the third quarter of 2026, following an $8.32 billion loss in the previous quarter. The company disclosed this preliminary estimate in a Form 8-K filed on Monday, noting that the figures were not yet audited or reviewed by KPMG, its external auditor.
Turnaround after heavy Q2 losses
The turnaround comes after a volatile second quarter in which the carrying value of Strategy’s bitcoin holdings was significantly below its purchase cost. As of June 30, the company recorded a total carrying value of $49.67 billion for its bitcoin, but by September 30, this figure had risen sharply to $70.82 billion. Executive Chairman Michael Saylor shared on X that the company recognized a $21 billion gain on digital assets in the latest quarter.
Strategy recognized a $21 billion gain on digital assets for Q3 2026, after previously reporting a substantial loss in the second quarter.
At the end of June, the value of the company’s bitcoin was below its initial purchase price, resulting in a deferred tax asset of $4.12 billion, which was counterbalanced by a valuation allowance of the same amount. By September 30, as bitcoin prices recovered, Strategy reversed its previously reported tax asset and valuation allowance, generating a tax benefit of $4.12 billion. The estimated deferred tax expense for the third quarter decreased to $1.88 billion, compared to about $6.00 billion earlier.
Weekly bitcoin purchases and updates on holdings
In early October, Strategy continued accumulating bitcoin, purchasing 334 BTC for $28.7 million between October 1 and October 4. The average cost was $85,839 per coin, including fees. This marked the third consecutive weekly purchase, though it was the smallest volume following acquisitions of 950 BTC and 1,665 BTC in previous weeks.
As of early October, the company’s total bitcoin holdings reached 848,000 BTC, acquired at a combined cost of $63.97 billion, equating to an average price of $75,441 per bitcoin. Funding for the latest purchase came from $15.7 million generated through MSTR stock sales and $13.0 million from the company’s USD Cash account.
| Week (2026) | BTC Purchased | Total Cost | Average Price per BTC |
|---|---|---|---|
| Sept. 17-23 | 1,665 BTC | N/A | N/A |
| Sept. 24-30 | 950 BTC | N/A | N/A |
| Oct. 1-4 | 334 BTC | $28.7 million | $85,839 |
Strategy also authorized share buybacks, repurchasing 1,773,802 STRC preferred shares for $176.3 million over the latest week. The average buyback price was about $99.39 per share, a slight increase from $98.86 in the prior week.
The company’s management signaled that it recommends maintaining STRC’s 12% dividend rate “until STRC has demonstrated sustained, healthy trading near $100 per share.”
Funding for the buybacks was sourced from multiple accounts. USD Cash contributed $154.1 million and finished the week with a balance of $833.4 million, down from $1.00 billion. Additionally, the company drew $142.5 million from its USD Reserve to cover preferred dividends and debt interest obligations, leaving $4.88 billion in reserve.
Shareholders are scheduled to vote on October 28 regarding a proposal to pay daily dividends on STRC and three other classes of preferred stock.
Mini dictionary: Strategy, a US-based public company, is widely recognized for holding the largest institutional bitcoin reserves and for its Executive Chairman Michael Saylor’s strong advocacy of bitcoin as a corporate treasury asset.
