Strategy acquired an additional 334 BTC for approximately $28.7 million between September 28 and October 4, bringing its total holdings to 848,000 BTC, an all-time high for the company, according to an 8-K filing with the SEC. Michael Saylor disclosed the figures directly on X:
"Strategy reports a $21 billion gain on digital assets in Q3 2026. Last week, we acquired 334 $BTC and repurchased $176M of $STRC. As of 10/4/26, we hold 848,000 BTC and $5.7B of USD Assets."
The latest purchase came at an average price of $85,838.80 per bitcoin, pushing the company's all-time average purchase price to $75,440.70 across its full position, for a total cost basis of roughly $64 billion including fees and expenses. At current prices, Strategy's holdings represent more than 4% of Bitcoin's 21 million supply cap and imply approximately $9 billion in unrealized gains.
Strategy reports a $21 billion gain on digital assets in Q3 2026. Last week, we acquired 334 $BTC and repurchased $176M of $STRC. As of 10/4/26, we hold 848,000 BTC and $5.7B of USD Assets. $MSTRhttps://t.co/DfKvdQl19R
— Strategy (@Strategy) October 5, 2026
How the purchase was funded
Strategy drew on two sources to fund the acquisition. The company sold 92,894 shares of MSTR common stock through its at-the-market program for approximately $15.7 million, with $18.8 billion worth of MSTR shares remaining available for issuance under that program as of October 4. The remaining $13 million came from Strategy's USD Cash reserve.
The 8-K filing breaks the funding down precisely: $15.7 million of bitcoin purchases came from MSTR stock sale proceeds, and $13.0 million came from USD Cash. This split matters because it shows Strategy increasingly treats its at-the-market equity program as a primary funding lever for new purchases rather than relying solely on cash reserves, a pattern consistent with how the company has financed the bulk of its accumulation since 2020 through a mix of equity issuance, convertible notes, and preferred stock offerings.
The STRC buyback and what it reveals about Strategy's cash priorities
Strategy also repurchased 1,033,168 shares of STRC preferred stock for $102.6 million between September 28 and 30, and another 740,634 shares for $73.7 million between October 1 and 4, totaling roughly $176.3 million across the two periods. The filing specifies that $154.1 million of the combined repurchase came from USD Cash, while $22.2 million was funded using interest earned on the company's cash, cash equivalents, and short-term investments.
Strategy maintains two distinct cash pools under its capital framework: a USD Reserve, intended specifically to cover preferred stock dividends and debt interest, and USD Cash, which management deploys more flexibly for bitcoin purchases, reserve expansion, or other capital management purposes. The company used $142.5 million of its USD Reserve during the period to fund dividends and interest payments, while USD Cash covered both the STRC buybacks and the incremental bitcoin purchase. As of October 4, the USD Reserve stood at $4.88 billion and USD Cash at $833.4 million, a split that shows Strategy keeping the bulk of its liquid capital earmarked for debt service obligations rather than discretionary spending.
The tax reversal that reshaped Q3's bottom line
Strategy's filing disclosed a notable swing in its deferred tax position. The company estimated a $20.91 billion gain on digital assets for the third quarter, paired with $1.88 billion in associated deferred tax expense. That tax figure reflects a significant reversal: Strategy had carried a $4.12 billion deferred tax asset as of June 30 tied to a prior loss position on its bitcoin holdings. Because the fair value of its bitcoin holdings exceeded cost basis by September 30, that deferred tax asset was reversed and its associated valuation allowance released, producing an approximately $4.12 billion income tax benefit that reduced the company's estimated deferred tax expense from roughly $6.00 billion down to $1.88 billion.
This reversal is a direct function of Bitcoin's price recovery during the quarter. A deferred tax asset tied to a loss position only has value if the company expects to use it to offset future taxable gains; once bitcoin's fair value climbed back above cost basis, the "loss" that asset was hedging against no longer existed on paper, forcing the reversal. The filing noted KPMG LLP has not audited or reviewed this financial information, meaning the figures remain management estimates pending the company's formal quarterly report.
Where Strategy sits among public Bitcoin holders now
Strategy's bitcoin acquisition tracker post on X, captioned "More orange than ever," arrived ahead of the Monday filing, continuing a pattern where such posts have often preceded purchase announcements.
More orange than ever. pic.twitter.com/on52TtcFO1
— Michael Saylor (@saylor) October 4, 2026
According to Bitcoin Treasuries data, 196 public companies have now adopted some form of Bitcoin acquisition strategy. Metaplanet sits second with 44,000 BTC, followed by Twenty One at 43,514 BTC, MARA at 35,577 BTC, and Bitcoin Standard Treasury Company at 30,021 BTC.
Strategy's stock rose 2.22% after the announcement and is now trading around $163. Bitcoin itself traded roughly flat over the same weekly period.
Roman Zaika
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