Strategy Posts $21 Billion Q3 Gain and Expands Bitcoin Holdings
Strategy, a prominent Bitcoin treasury firm, reported a substantial $20.91 billion gain on its digital assets for the third quarter of 2023. This figure was offset by a $1.88 billion deferred tax expense. The company also announced the acquisition of 334 BTC for approximately $28.7 million between October 1 and 4, bringing its total holdings to 848,000 BTC.
Simultaneously, Strategy engaged in a significant repurchase of its Stretch preferred stock, spending $176.3 million to buy back 1,773,802 shares. The funds for this repurchase were sourced from its USD Cash balance and interest earned on cash and short-term investments. The company's preferred buyback program still has $547.2 million remaining.
The firm's average cost for its entire Bitcoin position stands at $75,440.70 per BTC, while the recent purchases were made at an average price of $85,838.80, reflecting a nearly 14% increase. Strategy also sold 92,894 MSTR shares for $15.7 million, with all proceeds directed toward Bitcoin acquisitions.
Strategy's financial reserves are now divided into a USD Reserve of $4.88 billion, which covers preferred dividends and debt interest, and USD Cash of $833.4 million for general purposes, including further Bitcoin investments. The company's actions mirror those of fellow Bitcoin treasury firm Metaplanet, which also focused on balance sheet management during the quarter.