Strategy estimates $20.91 billion gain on digital assets for third quarter

Strategy Inc (MSTR) provided a financial update for the third quarter of 2026, estimating a gain on digital assets of $20.91 billion along with an associated deferred tax expense of $1.88 billion for the three months ended September 30, 2026, according to a regulatory filing on Monday.

The company estimated that its digital asset carrying value reached $70.82 billion as of September 30, 2026, alongside a net deferred tax liability of $1.88 billion regarding its bitcoin holdings and activity.

Strategy said the fair value of its bitcoin holdings exceeded their cost basis as of September 30, 2026. This caused the company to reverse its $4.12 billion deferred tax asset from June 30, 2026, and release the related valuation allowance. The release resulted in an income tax benefit of approximately $4.12 billion, cutting the estimated deferred tax expense from roughly $6.00 billion down to $1.88 billion.

During the period from October 1, 2026, to October 4, 2026, the company sold 92,894 shares of MSTR Stock through its at-the-market offering program, generating $15.7 million in net proceeds after sales commissions. The company used those proceeds to fund bitcoin purchases.

Between September 28, 2026, and September 30, 2026, the company purchased no additional MSTR Stock through the ATM program. Total net proceeds from ATM sales across all programs stood at $15.7 million for the early October window.

Strategy updated its bitcoin holdings to 848,000 bitcoins as of October 4, 2026, with an aggregate purchase price of $63.97 billion and an average purchase price of $75,440.70 per bitcoin, inclusive of fees and expenses. Between October 1, 2026, and October 4, 2026, the company acquired 334 bitcoins for an aggregate purchase price of $28.7 million, with $15.7 million funded by MSTR Stock sales and $13.0 million funded by USD Cash.

As of September 30, 2026, Strategy held 847,666 bitcoins at an aggregate purchase price of $63.95 billion and an average purchase price of $75,436.60 per bitcoin. No bitcoin purchases were made between September 28, 2026, and September 30, 2026.

Under its digital credit securities repurchase program, Strategy repurchased 1,033,168 shares of STRC Stock for an aggregate purchase price of $102.6 million between September 28, 2026, and September 30, 2026. Of that amount, $80.4 million came from USD Cash and $22.2 million came from interest earned on cash, cash equivalents, and short-term investments.

Between October 1, 2026, and October 4, 2026, the company repurchased an additional 740,634 shares of STRC Stock for an aggregate purchase price of $73.7 million, funded using USD Cash. As of October 4, 2026, $547.2 million remained available under the digital credit securities repurchase program, down from $620.9 million available as of September 30, 2026.

For MSTR Stock, $1.0 billion remained available under the repurchase program as of both September 30, 2026, and October 4, 2026, with no shares repurchased during the reported periods.

Strategy maintained a USD Reserve and USD Cash as part of its capital framework. Between September 28, 2026, and October 4, 2026, the company used $154.1 million of USD Cash for STRC Stock repurchases and $13.0 million of USD Cash for bitcoin purchases. During the same period, the company used $142.5 million from the USD Reserve to pay preferred stock dividends and debt interest.

As of October 4, 2026, the USD Reserve balance stood at $4.88 billion and USD Cash balance was $833.4 million.