Strategy Reports $20.9 Billion Bitcoin Gain in Third Quarter
Strategy, the investment firm led by Michael Saylor, estimates a significant rebound in its Bitcoin holdings for the third quarter of 2026. The company reported a preliminary gain of $20.91 billion on its Bitcoin investments, reversing the $8.32 billion loss it recorded in the second quarter. This positive shift was driven by the rising value of Bitcoin, which increased the carrying value of Strategy's holdings from $49.67 billion at the end of June to $70.82 billion at the end of September.
Strategy also benefited from a $4.12 billion tax adjustment. At the end of June, the company had a deferred tax asset offset by a valuation allowance due to Bitcoin's value being below its purchase price. With the cryptocurrency's price recovering by the end of September, Strategy reversed this asset and released the allowance, reducing its estimated deferred tax expense for the quarter to $1.88 billion.
In addition to the gain, Strategy continued its Bitcoin accumulation, purchasing 334 BTC between October 1 and October 4 for $28.7 million. This brings the company's total Bitcoin holdings to 848,000 BTC, acquired for $63.97 billion. The latest purchases were funded by sales of MSTR stock and the company's USD Cash account.
Strategy also repurchased 1,773,802 shares of its STRC preferred stock for $176.3 million, averaging about $99.39 per share. Management has indicated it will recommend holding STRC's 12% dividend until the stock demonstrates sustained trading near $100 per share.