Strategy, the world’s largest corporate holder of Bitcoin, reported $3.9 billion in fair value gains for the third quarter, according to a company press release.
Strategy holds roughly 640,000 Bitcoin, with an average purchase price of $73,983 per coin. At current prices near $124,500, its holdings are valued at approximately $78.7 billion, representing unrealized gains of about $31.4 billion.
“For every $10,000 change in BTC price, we generate $6 billion in unrealized gains on our BTC holdings,” noted Chaitanya Jain, a Bitcoin Strategist at Strategy.
The company has also issued several types of preferred shares this year to access additional funding beyond convertible debt and common stock. Three of these preferred share classes carry an annualized dividend rate of 10%.
Strategy disclosed in an SEC filing that payouts on its STRC and STRD shares included accrued interest, totaling $22.4 million and $37.6 million for the quarter, respectively.
Shares of Strategy rose roughly 3% to around $364 on Monday, extending a year-to-date gain of roughly 25% and reaching a high of $450 in July.
All this comes as Bitcoin surged past short-term resistance last week, entering a “blue sky breakout” as bulls regained control and pushed the price to a record weekly close of $123,515.
With no prior highs to guide resistance, technical analysis suggests potential barriers at $131,000, $135,000, and $140,000.
Strategy did not purchase Bitcoin last week
The company also did not make any purchases of bitcoin last week. The move coincided with $140 million in dividend payments, marking the first time the company halted Bitcoin accumulation since the end of July.
The pause in Bitcoin purchases is part of a pattern the company has previously followed. This year, Strategy issued three weekly updates in which it did not buy Bitcoin, two of which aligned with the ends of its first and second fiscal quarters.
Last week’s announcement coincided with the close of the third quarter.
Over the weekend, Strategy co-founder and Executive Chairman Michael Saylor hinted at the company’s halt in purchases via X, noting there would be “no new orange dots this week,” a reference to the chart used to track past Bitcoin acquisitions.
Strategy’s long-term vision
Michael Saylor envisions Strategy building a trillion-dollar Bitcoin balance sheet, using it to transform the global credit system.
He expects Bitcoin’s historical long-term appreciation, around 21% annually, to supercharge the firm’s capital stock. On top of that, Saylor proposes issuing Bitcoin-backed credit with yields higher than traditional fiat debt, creating a dual flywheel of growing collateral and expanding digital credit markets.
He predicts that as corporations, banks, and sovereign funds adopt Bitcoin, traditional financial instruments and equity indexes would become indirect Bitcoin vehicles, benefiting from its compounding growth.
Ultimately, he sees Bitcoin treasury companies as central to a new financial architecture, enabling higher-yield savings, Bitcoin-based money markets, reimagined insurance, and global adoption by tech giants.