Strategy: $20.9bn quarterly gain, 334 BTC bought, six times as much spent on buybacks
Victoria Shinder1 min readStrategy Inc filed a Form 8-K with the SEC on 5 October covering its bitcoin, its share sales and buybacks, and an estimate of its third-quarter result. The figures below are from that filing; the quarterly numbers are management estimates, not audited or reviewed by KPMG.
Bitcoin.
- No bitcoin bought between 28 and 30 September; 334 BTC bought between 1 and 4 October for $28.7 million, at an average of $85,838.8.
- Holdings as of 4 October: 848,000 BTC, bought for $63.97 billion, an average of $75,440.7 per coin.
- The purchases were paid for with $15.7 million from selling 92,894 common shares and $13.0 million from cash.
Buybacks were larger than purchases. In the same week Strategy repurchased its STRC variable-rate preferred stock: 1,033,168 shares for $102.6 million (28–30 September) and 740,634 shares for $73.7 million (1–4 October) — $176.3 million in all, mostly from cash. $547.2 million remains in its preferred-stock repurchase programme.
Cash. Over the week the company used $142.5 million of its USD Reserve for preferred dividends and interest. On 4 October the USD Reserve stood at $4.88 billion and USD Cash at $833.4 million.
The quarter. For July–September Strategy estimates a $20.91 billion gain on digital assets and a carrying value of $70.82 billion on 30 September. Because the fair value of its bitcoin exceeded cost on 30 September, it reversed a $4.12 billion deferred tax asset and released the valuation allowance against it, cutting estimated deferred tax expense from about $6.00 billion to $1.88 billion.
The pattern in the filing is the story: for the week it reports, the company spent about six times as much retiring preferred stock as buying bitcoin.