Strategy Reports $21 Billion Bitcoin Gains in Q3

Strategy, the Nasdaq-listed Bitcoin treasury company formerly known as MicroStrategy, reported a $21 billion unrealized gain on its digital assets in the third quarter. The gain was driven by Bitcoin’s price surge, which helped the company return to profitability. As of October 4, Strategy held 848,000 Bitcoin, valued at approximately $72.6 billion, along with $5.7 billion in U.S. dollar assets.

Last week, the company acquired an additional 334 Bitcoin for $28.7 million and repurchased $176 million in STRC preferred shares. Bitcoin’s price rose over 40% during the third quarter, marking its best quarterly performance in years. At the time of the report, Bitcoin was trading at approximately $85,655, up 8% over the past 30 days.

Following the announcement, Strategy’s stock (MSTR) rose nearly 2% during trading hours in New York. Earlier this year, the company announced a plan to occasionally sell Bitcoin to raise up to $1.25 billion for U.S. dollar reserves, which slowed its Bitcoin acquisition pace. CEO Phong Le reassured investors that the company maintains a “bulletproof balance sheet.”

In its July quarterly earnings report, Strategy reported an $8.22 billion loss. The company was forced to sell Bitcoin earlier this year but has since rebounded with significant gains and strategic repurchases of preferred shares.