Strategy, the world’s largest corporate bitcoin holder, reported a $20.91 billion gain on its bitcoin for the third quarter. Eight days after it valued its coins at $81,200 each, most of that cushion has gone.
The Q3 results, also filed with the SEC as an 8-K exhibit, put its holdings at 848,517 BTC as of October 25, bought for $64.02 billion. That is an average of about $75,446 per coin. The filing valued them at $68.90 billion using an October 23 price of $81,200.
At 4:47 AM IST on October 31, CoinGecko showed bitcoin at $76,988. That leaves Strategy’s whole stack only about 2.0% above what it paid.
Where the gain turns into a loss
Our table runs the same 848,517 BTC and $64.02 billion cost at different prices. The last row is the average price of the coins Strategy let go this summer (more on that below).
| Bitcoin price | Value of holdings | Gain or loss vs cost | Distance from $75,446 |
|---|---|---|---|
| $81,200 (Oct 23, used in filing) | $68.90B | +$4.88B | +7.6% |
| $76,988 (Oct 31, 4:47 AM IST) | $65.33B | +$1.31B | +2.0% |
| $75,446 (average cost) | $64.02B | $0 | 0% |
| $70,000 | $59.40B | −$4.62B | −7.2% |
| $62,176 (summer sale average) | $52.76B | −$11.26B | −17.6% |
A $1,542 drop per coin is all it takes for the company’s bitcoin to sit below cost.
Strategy has already sold coins below this line
The company’s own Bitcoin Ledger shows something most coverage of the earnings skipped. Five entries between June 1 and August 10 are negative: 32, 1,363, 2,225, 1,638 and 1,690 BTC, a net reduction of 6,948 BTC for about $432 million. That works out to roughly $62,176 per coin, well under today’s average cost.
Buying then resumed. Strategy added 4,603 BTC in the August 31 entry and smaller amounts each week through October 19, which is how it reached 848,517.
So “Strategy never sells” is no longer a safe assumption. It reduced holdings once, at lower prices, when it needed or chose to.
Why a 2% cushion matters less than it sounds
Being near cost is not a crisis by itself. Strategy reported $5.07 billion in US dollar reserves, which it says covers 3.4 years of preferred dividends and debt interest, according to the earnings call. That implies about $1.49 billion a year in fixed payments. Net leverage fell to 2.4% from 8.4% in the second quarter.
What changes is the story it can tell investors. Its “BTC $ Gain” is already −$2.03 billion for 2026, and its BTC Yield is −3.7% year to date. Management now leans on “digital credit,” such as its 12% STRC preferred, which moves to daily dividends from November 1. We looked at how STRC buybacks have outpaced its bitcoin buying in mid-October.
What it means for Indian investors
In rupees, Strategy’s break-even is about ₹71.6 lakh per bitcoin, against a live price near ₹73.1 lakh. Anyone in India who bought bitcoin in the last few months may well be closer to, or below, their own cost than Strategy is.
If you are deciding between bitcoin and a listed proxy like MSTR, remember the tax gap. Bitcoin held directly is taxed at a flat 30% plus cess on gains, with 1% TDS on sales and no loss set-off. MSTR bought through the LRS route is taxed like other foreign shares, as our US bitcoin ETF tax explainer sets out. You can check your own position with the crypto profit calculator.
BtcMedia verdict: Strategy is solvent and well covered on its payments, but its bitcoin profit is now thin enough that one bad day erases it. Watch the $75,446 line, and watch the Bitcoin Ledger for any new negative entry.
How we calculated this: 848,517 BTC and $64.02 billion cost from Strategy’s Q3 release; bitcoin at $76,988 and ₹73,07,352 from CoinGecko at 4:47 AM IST, 31 October 2026 (implied ₹94.92 per dollar); summer reductions summed from Strategy’s Bitcoin Ledger.
FAQ
What is Strategy’s average bitcoin purchase price? About $75,446 per BTC, across 848,517 BTC bought for $64.02 billion as of October 25, 2026.
Is Strategy losing money on its bitcoin? Not yet. At $76,988 its holdings are worth about $1.31 billion more than they cost. Below $75,446 they would be under water.
Has Strategy ever sold bitcoin? Yes. Its ledger shows net reductions totalling 6,948 BTC between June 1 and August 10, 2026, for about $432 million.
This article is for information only and is not financial advice.