Strategy, recognized as the largest corporate holder of Bitcoin globally, announced a fair value gain of $3.9 billion for the third quarter, as stated in a company press release.
Currently, Strategy possesses approximately 640,000 Bitcoin, acquired at an average price of $73,983 each. With present prices hovering around $124,500, the total value of these holdings stands near $78.7 billion, resulting in unrealized gains of roughly $31.4 billion.
“For every $10,000 fluctuation in BTC price, we realize $6 billion in unrealized gains from our BTC assets,” highlighted Chaitanya Jain, a Bitcoin Strategist at Strategy.
This year, the company has also issued various types of preferred shares to secure additional funding beyond convertible debt and common stock. Three classes of these preferred shares carry an annualized dividend rate of 10%.
Strategy revealed in an SEC filing that payments on its STRC and STRD shares included accrued interest, amounting to $22.4 million and $37.6 million for the quarter, respectively.
On Monday, shares of Strategy increased by about 3% to roughly $364, marking a year-to-date rise of around 25%, and achieving a peak of $450 in July.
This activity follows Bitcoin’s recent spike past short-term resistance levels last week, entering a “blue sky breakout” as bullish momentum pushed prices to a record weekly close of $123,515.
With no previous highs to determine resistance, technical analysis indicates potential hurdles at $131,000, $135,000, and $140,000.
Strategy did not purchase Bitcoin last week
Additionally, the company refrained from making any Bitcoin purchases last week. This decision coincided with $140 million in dividend payouts, marking the first occasion since late July that the company paused its Bitcoin accumulation.
This halt in Bitcoin purchases reflects a trend the company has followed in the past. Throughout the year, Strategy provided three updates in which it did not acquire Bitcoin, coinciding with the conclusion of its first and second fiscal quarters.
The recent announcement aligned with the closure of the third quarter.
Over the weekend, Strategy co-founder and Executive Chairman Michael Saylor hinted at the purchasing pause via X, mentioning that there would be “no new orange dots this week,” referring to the chart that tracks previous Bitcoin acquisitions.
Strategy’s long-term vision
Saylor envisions Strategy developing a trillion-dollar Bitcoin balance sheet to reform the global credit system.
He anticipates Bitcoin’s historical long-term appreciation, around 21% annually, will enhance the firm’s capital stock. Furthermore, Saylor suggests issuing Bitcoin-backed credit with yields that surpass traditional fiat debt, fostering a dual flywheel of expanding collateral and digital credit markets.
He foresees that as corporations, banks, and sovereign funds embrace Bitcoin, conventional financial instruments and equity indexes will act as indirect Bitcoin vehicles, benefiting from Bitcoin’s compounding growth.
Ultimately, he envisions companies with Bitcoin treasuries as pivotal to a new financial architecture, which would facilitate higher-yield savings, Bitcoin-based money markets, reimagined insurance, and global tech giant adoption.
