Strategy expanded its Bitcoin holdings to 848,000 BTC after purchasing 334 coins for $28.7 million, while spending $176.3 million to repurchase its own Stretch preferred stock. The company also estimated a $20.91 billion gain on digital assets for the third quarter, alongside $1.88 billion in deferred tax expense, according to Decrypt.
Bitcoin purchases and preferred-stock buybacks
The purchases were made between October 1 and October 4 at an average price of $85,838.80 per Bitcoin. Strategy did not buy Bitcoin during the final three days of September. Its total holdings now represent a new record for the company, which operates a large Bitcoin treasury.
The company’s average cost across its entire Bitcoin position is $75,440.70 per coin. That means the latest purchases were made at a price nearly 14% above its overall cost basis.
During the same period, Strategy directed substantially more money toward buying back its Stretch preferred stock, also known by the ticker STRC. It repurchased 1,033,168 shares for $102.6 million during the final days of September and another 740,634 shares for $73.7 million in the first four days of October. The total repurchase was $176.3 million.
Strategy said $154.1 million of the buyback was funded from its USD Cash balance, while $22.2 million came from interest earned on cash and short-term investments. The preferred-stock repurchase program has $547.2 million remaining.
Funding sources and cash balances
Strategy also sold 92,894 shares of its common stock, MSTR, generating $15.7 million in net proceeds. The company used all of those proceeds to purchase Bitcoin and added another $13 million from its USD Cash balance. None of its four preferred-stock lines were sold through its at-the-market program during either period.
As of October 4, Strategy’s dollar assets were divided between a $4.88 billion USD Reserve and $833.4 million in USD Cash. The reserve is intended to cover preferred dividends and debt interest, while the cash balance is available for general corporate purposes, including Bitcoin purchases. During the week, Strategy used $142.5 million from the reserve for dividends and interest.
Q3 gain reflects Bitcoin’s fair-value accounting
The largest figure in the filing was the estimated $20.91 billion gain on digital assets for the third quarter. Strategy records Bitcoin at fair value, so the figure reflects the increase in the market value of its holdings during the quarter rather than only gains from coins sold.
The company also reported $1.88 billion in associated deferred tax expense. The gain and tax figure are accounting measures tied to the reported value of its digital-asset holdings.
The balance-sheet focus reflects two priorities: continuing to hold Bitcoin while also managing preferred-stock obligations and other financing requirements. A similar emphasis has appeared at fellow Bitcoin treasury company Metaplanet, which sold 10,000 BTC and bought back 11,000 during its third quarter.
Market picture
Moneyiar market data at 10:39 a.m. on October 7, 2026, showed Bitcoin at $83,675.73, down 2.7% over 24 hours and 0.19% over seven days. Billions Network was $0.0139971939, down 0.59% in 24 hours and up 10.04% over seven days, based on Moneyiar data recorded at 1:39 a.m. on September 21, 2026. RedStone stood at $0.1496616376, down 9.95% over 24 hours and 10.45% over seven days, while Loaded Lions was $0.0014460994, down 5.67% and 5.12%, respectively, according to Moneyiar data at 10:39 a.m. on October 7, 2026.
