Strategy estimates $20.9 billion third-quarter gain on bitcoin, holdings reach 848,000 BTC

Strategy estimates it recorded a $20.91 billion gain on digital assets for the three months ended Sept. 30, along with $1.88 billion of associated deferred tax expense, according to an 8-K filed Monday before the market opened.

The tax bill shrank because of an accounting reversal. Because the fair value of Strategy's bitcoin exceeded its cost basis at quarter-end, the company reversed a $4.12 billion deferred tax asset it carried at June 30 and released the related valuation allowance. That produced an approximately $4.12 billion income tax benefit, cutting estimated deferred tax expense from about $6.00 billion to $1.88 billion.

Strategy put its digital asset carrying value at $70.82 billion as of Sept. 30. The company noted that the estimates were prepared by management and have not been audited or reviewed by its accountant, KPMG.

On the buying front, Strategy bought no bitcoin from Sept. 28 to Sept. 30, then added 334 bitcoin for $28.7 million from Oct. 1 to Oct. 4, an average of $85,838.8 per coin. That brought holdings to 848,000 bitcoin, acquired for an aggregate $63.97 billion, or $75,440.7 each on average.

The new coins were funded with $15.7 million of net proceeds from sales of 92,894 Class A shares under its at-the-market program and $13.0 million of cash.

Strategy also kept buying back its variable-rate Stretch preferred stock, or STRC, repurchasing 1,033,168 shares for $102.6 million from Sept. 28 to Sept. 30 and 740,634 shares for $73.7 million from Oct. 1 to Oct. 4. It had $547.2 million left under its preferred repurchase program as of Oct. 4.

By the numbers

• Estimated Q3 gain on digital assets: $20.91 billion
• Estimated Q3 deferred tax expense: $1.88 billion
• Valuation allowance release: about $4.12 billion
• Bitcoin held as of Oct. 4: 848,000
• Oct. 1–4 purchases: 334 BTC for $28.7 million
• STRC repurchases, Sept. 28–Oct. 4: $176.3 million

Sources

1. Strategy Inc Form 8-K (Items 7.01, 8.01), filed Oct. 5, 2026, accession 0001193125-26-413164

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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