Strategy Estimates a $20.9 Billion Q3 Bitcoin Gain, Reversing Its Second-Quarter Loss

Strategy expects to book a $20.91 billion gain on its bitcoin for the third quarter, three months after it recorded a loss. The company disclosed the preliminary estimate in a Form 8-K on Monday, along with a small weekly bitcoin purchase and more buybacks of its STRC preferred stock.

For the second quarter, Strategy posted an $8.32 billion loss on digital assets. The carrying value of its bitcoin climbed to $70.82 billion at Sept. 30, from $49.67 billion at June 30.

“Strategy reports a $21 billion gain on digital assets in Q3 2026,” Executive Chairman Michael Saylor wrote on X.

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At the end of June, Strategy’s bitcoin was worth less than it had paid for it, leaving a $4.12 billion deferred tax asset offset by a valuation allowance. With the coins back above cost at Sept. 30, Strategy reversed the asset and released the allowance. Releasing it was worth a tax benefit of about $4.12 billion, which brought estimated deferred tax expense for the quarter down to $1.88 billion, from roughly $6.00 billion. KPMG, its auditor, has not audited or reviewed the figures.

Strategy bought 334 BTC for $28.7 million between Oct. 1 and Oct. 4, an average of $85,839 a coin including fees. It was the third weekly buy in a row and the smallest, after 950 BTC and 1,665 BTC in the prior two weeks.

Holdings reached 848,000 BTC, bought for $63.97 billion, or about $75,441 a coin. The latest coins were paid for with $15.7 million from sales of MSTR stock and $13.0 million from the company’s USD Cash account.

Strategy repurchased 1,773,802 STRC shares for $176.3 million over the week, an average of about $99.39 each, up from roughly $98.86 the week before. Management has said it will recommend holding STRC’s 12% dividend “until STRC has demonstrated sustained, healthy trading near $100 per share.”

USD Cash funded $154.1 million of the buybacks and ended the week at $833.4 million, down from $1.00 billion. Strategy also drew $142.5 million from its USD Reserve for preferred dividends and debt interest, leaving $4.88 billion.

Common stockholders vote Oct. 28 on a proposal to pay daily dividends on STRC and three other preferreds.

Related Listen: Strategy Sells $216M in Bitcoin. Is Saylor a Buyer or a Seller Now? – Bits + Bips

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