Strategy estimated a $20.91 billion gain on its digital assets for the third quarter of 2026, according to a Form 8-K filed with the U.S. Securities and Exchange Commission on October 5th.

Company founder and chairman Michael Saylor announced the results in an October 5th X post, adding that Strategy bought 334 Bitcoin and repurchased $176 million of its STRC preferred stock last week.

The company valued its digital assets at $70.82 billion as of September 30th and recorded an estimated $1.88 billion deferred tax expense for the quarter.

That expense was smaller than it would have been because the fair value of Strategy's Bitcoin rose above its cost basis by the end of the quarter.

As a result, the company reversed a $4.12 billion deferred tax asset tied to earlier losses on its holdings and released the valuation allowance held against it, the filing disclosed.

The resulting $4.12 billion tax benefit lowered Strategy's estimated deferred tax expense from about $6.00 billion to $1.88 billion.

Strategy acquired its 334 Bitcoin for $28.7 million between October 1st and October 4th, an average of $85,839 each.

The purchase brought its holdings to 848,000 Bitcoin, acquired for an aggregate $63.97 billion, or $75,441 per Bitcoin.

The company made no Bitcoin purchases from September 28th through September 30th, closing the quarter with 847,666.

Of the $28.7 million spent, $15.7 million came from selling 92,894 shares of MSTR Class A common stock through Strategy's at-the-market program, and $13.0 million came from USD Cash.

Strategy also bought back 1,773,802 shares of STRC for $176.3 million from September 28th through October 4th.

STRC, formally the Variable Rate Series A Perpetual Stretch Preferred Stock, is one of four preferred share classes Strategy has issued.

USD Cash covered $154.1 million of the repurchases, while $22.2 million came from interest earned on the company's cash and short-term investments.

The company reported $547.2 million of remaining capacity under its preferred stock buyback authorization, while its separate $1.0 billion MSTR buyback program went unused.

Strategy sold no shares of STRC or its other preferred stocks, STRF, STRK, and STRD, during the period.

The company drew $142.5 million from its USD Reserve to pay preferred dividends and interest on its debt.

Strategy maintains the USD Reserve to support those payments, and it holds USD Cash for broader uses such as buying Bitcoin and managing capital.

As of October 4th, the USD Reserve stood at $4.88 billion and USD Cash at $833.4 million, down from $5.02 billion and $1.00 billion a week earlier.

In a follow-up post, Saylor reported a USD Duration of 3.6 years and a BTC Credit of 50 basis points for STRC, based on a 10% annual Bitcoin return, 40% volatility, and a Bitcoin price of $84,289.