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Strategy Books $20.9 Billion in Q3, Shifts to Buying Back STRC
Bitcoin treasury leader Strategy (MSTR) posted a huge gain on paper in the third quarter. According to an 8-K filing submitted by Strategy on October 5, the company estimates that it recognized $20.91 billion in digital asset gains in the third quarter of 2026. However, Strategy noticeably slowed its activity last week: it bought just 334 bitcoins, while spending about $176 million to buy back its own STRC preferred shares. As of October 4, Strategy held 848,000 bitcoins and about $5.7 billion in U.S. dollar assets.
Back Above Cost in Q3, with $20.9 Billion in Paper Gains
The gain was mainly driven by Bitcoin’s rebound in the third quarter. It was an unrealized gain from marking the assets to market, not a profit from actually selling Bitcoin. The 8-K shows that as of September 30, Strategy’s Bitcoin carrying value was $70.82 billion, and it also recognized $1.88 billion in related deferred income tax expense.
More notable is the change in the cost basis. The 8-K states that as of June 30, Strategy’s Bitcoin market value was still below its cost basis, leaving it with a $4.12 billion deferred tax asset related to Bitcoin losses. By September 30, market value had risen above cost, so that asset was reversed, along with the related valuation allowance, resulting in an income tax benefit of about $4.12 billion.
Based on the figures in the 8-K, Strategy’s 847,666 bitcoins as of September 30 had a total cost of about $63.95 billion, or an average cost of about $75,437 per Bitcoin. Compared with their carrying value of $70.82 billion, this represents an unrealized gain of about $6.9 billion, or roughly 10.7%. In other words, most of the $20.9 billion gain in the third quarter went toward offsetting earlier paper losses: according to Strategy’s second-quarter financial statements, the carrying value of its roughly 846,000 bitcoins was just $49.67 billion as of June 30, far below their cost basis. It was previously reported that Strategy posted an $8.3 billion paper loss on Bitcoin in the second quarter.
Just 334 Bitcoins Bought Last Week; No Preferred Shares Issued
Compared with its purchases at the end of September, Strategy was quite restrained last week. The 8-K shows that it bought no Bitcoin from September 28 through 30, then bought 334 bitcoins from October 1 through 4 for about $28.7 million, at an average price of roughly $85,839 per coin. The purchases were funded by $15.7 million from common stock issuance and $13 million in cash on hand.
During the same period, none of Strategy’s four preferred share classes—STRF, STRC, STRK, and STRD—sold any shares through an at-the-market (ATM) offering. It was previously reported that Strategy bought 1,665 bitcoins at the end of September, bringing its holdings to 847,666. Last week’s purchase volume was significantly lower.
Instead, Spent $176 Million Buying Back STRC
Strategy’s main move last week was buying back preferred shares. The 8-K shows that Strategy repurchased about 1.03 million STRC shares from September 28 through 30 for $102.6 million, then bought back about 740,000 shares from October 1 through 4 for $73.7 million. In total, it repurchased about 1.77 million shares for $176.3 million, at roughly $99.3 to $99.5 per share—slightly below the $100 par value. The October buybacks were paid for with cash on hand, and about $547 million remains available under Strategy’s preferred share repurchase program.
STRC is a floating-rate perpetual preferred stock issued by Strategy, with a par value of $100 per share. It has also been one of the company’s main fundraising tools for buying Bitcoin. The 8-K did not give a specific reason for the buybacks, but Strategy announced its repurchase policy in a July press release: whenever STRC trades below its $100 par value, the company intends to buy it back “regularly and in a disciplined manner”—buying more when the discount is deeper and gradually slowing purchases as the price approaches par. Its long-term goal is to keep STRC trading steadily near $100. CEO Phong Le said at the time that buying back shares below par reduces future preferred dividends at a discount, making it an attractive use of capital.
It was previously reported that Strategy launched its STRC buyback program in July to support the share price, with an average repurchase price of about $86.52 at the time. Last week, the repurchase price was already above $99, indicating that STRC had returned to near par value.
$5.7 Billion in U.S. Dollar Assets, Most Set Aside for Dividends
As of October 4, Strategy’s U.S. dollar assets were divided into two parts: a $4.88 billion “USD Reserve” dedicated to paying preferred dividends and debt interest, and about $830 million in “USD Cash,” which can be used to buy Bitcoin, expand the reserve, or for other capital allocation purposes.
Strive, another Bitcoin treasury company that also submitted an 8-K on October 5, bought 2,000 bitcoins, but its overall average cost was about $90,000—higher than Bitcoin’s price at quarter-end. By contrast, Strategy’s early accumulation at lower prices means it has returned to profitability as Bitcoin has rebounded. Its decision last week to slow Bitcoin purchases and instead buy back preferred shares is also worth watching.
This article, “Strategy Books $20.9 Billion in Q3, Shifts to Buying Back STRC,” originally appeared on .
Strategy Books $20.9 Billion in Q3, Shifts to Buying Back STRC
Bitcoin treasury leader Strategy (MSTR) posted a huge gain on paper in the third quarter. According to an 8-K filing submitted by Strategy on October 5, the company estimates that it recognized $20.91 billion in digital asset gains in the third quarter of 2026. However, Strategy noticeably slowed its activity last week: it bought just 334 bitcoins, while spending about $176 million to buy back its own STRC preferred shares. As of October 4, Strategy held 848,000 bitcoins and about $5.7 billion in U.S. dollar assets.
Back Above Cost in Q3, with $20.9 Billion in Paper Gains
The gain was mainly driven by Bitcoin’s rebound in the third quarter. It was an unrealized gain from marking the assets to market, not a profit from actually selling Bitcoin. The 8-K shows that as of September 30, Strategy’s Bitcoin carrying value was $70.82 billion, and it also recognized $1.88 billion in related deferred income tax expense.
More notable is the change in the cost basis. The 8-K states that as of June 30, Strategy’s Bitcoin market value was still below its cost basis, leaving it with a $4.12 billion deferred tax asset related to Bitcoin losses. By September 30, market value had risen above cost, so that asset was reversed, along with the related valuation allowance, resulting in an income tax benefit of about $4.12 billion.
Based on the figures in the 8-K, Strategy’s 847,666 bitcoins as of September 30 had a total cost of about $63.95 billion, or an average cost of about $75,437 per Bitcoin. Compared with their carrying value of $70.82 billion, this represents an unrealized gain of about $6.9 billion, or roughly 10.7%. In other words, most of the $20.9 billion gain in the third quarter went toward offsetting earlier paper losses: according to Strategy’s second-quarter financial statements, the carrying value of its roughly 846,000 bitcoins was just $49.67 billion as of June 30, far below their cost basis. It was previously reported that Strategy posted an $8.3 billion paper loss on Bitcoin in the second quarter.
Just 334 Bitcoins Bought Last Week; No Preferred Shares Issued
Compared with its purchases at the end of September, Strategy was quite restrained last week. The 8-K shows that it bought no Bitcoin from September 28 through 30, then bought 334 bitcoins from October 1 through 4 for about $28.7 million, at an average price of roughly $85,839 per coin. The purchases were funded by $15.7 million from common stock issuance and $13 million in cash on hand.
During the same period, none of Strategy’s four preferred share classes—STRF, STRC, STRK, and STRD—sold any shares through an at-the-market (ATM) offering. It was previously reported that Strategy bought 1,665 bitcoins at the end of September, bringing its holdings to 847,666. Last week’s purchase volume was significantly lower.
Instead, Spent $176 Million Buying Back STRC
Strategy’s main move last week was buying back preferred shares. The 8-K shows that Strategy repurchased about 1.03 million STRC shares from September 28 through 30 for $102.6 million, then bought back about 740,000 shares from October 1 through 4 for $73.7 million. In total, it repurchased about 1.77 million shares for $176.3 million, at roughly $99.3 to $99.5 per share—slightly below the $100 par value. The October buybacks were paid for with cash on hand, and about $547 million remains available under Strategy’s preferred share repurchase program.
STRC is a floating-rate perpetual preferred stock issued by Strategy, with a par value of $100 per share. It has also been one of the company’s main fundraising tools for buying Bitcoin. The 8-K did not give a specific reason for the buybacks, but Strategy announced its repurchase policy in a July press release: whenever STRC trades below its $100 par value, the company intends to buy it back “regularly and in a disciplined manner”—buying more when the discount is deeper and gradually slowing purchases as the price approaches par. Its long-term goal is to keep STRC trading steadily near $100. CEO Phong Le said at the time that buying back shares below par reduces future preferred dividends at a discount, making it an attractive use of capital.
It was previously reported that Strategy launched its STRC buyback program in July to support the share price, with an average repurchase price of about $86.52 at the time. Last week, the repurchase price was already above $99, indicating that STRC had returned to near par value.
$5.7 Billion in U.S. Dollar Assets, Most Set Aside for Dividends
As of October 4, Strategy’s U.S. dollar assets were divided into two parts: a $4.88 billion “USD Reserve” dedicated to paying preferred dividends and debt interest, and about $830 million in “USD Cash,” which can be used to buy Bitcoin, expand the reserve, or for other capital allocation purposes.
Strive, another Bitcoin treasury company that also submitted an 8-K on October 5, bought 2,000 bitcoins, but its overall average cost was about $90,000—higher than Bitcoin’s price at quarter-end. By contrast, Strategy’s early accumulation at lower prices means it has returned to profitability as Bitcoin has rebounded. Its decision last week to slow Bitcoin purchases and instead buy back preferred shares is also worth watching.
This article, “Strategy Books $20.9 Billion in Q3, Shifts to Buying Back STRC,” originally appeared on .
