Strategy Sees Bitcoin Margin Shrink Ahead of Earnings
Strategy reports earnings on Thursday, while its bitcoin stash is still just above its purchase price. U.S. spot bitcoin ETF buyers are also sitting at an average loss.
Key Takeaways
- Strategy reports its third-quarter results on Thursday after the U.S. stock market closes.
- The company holds 848,517 BTC, bought at an average of $75,446 each, and the stash is still trading about 6% above the purchase price.
- Glassnode estimates that buyers of U.S. spot bitcoin ETFs paid an average of about $81,500, above the current bitcoin price.
Strategy reports its third-quarter results on Thursday after the U.S. stock market closes. The largest corporate bitcoin holder now sees its stash trading at only about 6% above the purchase price, while bitcoin is trading around $80,000 (€71,900).
Bitcoin Stash Under Pressure
According to a filing on October 26, Strategy holds 848,517 BTC, bought at an average price of $75,446 (€67,800) each. At the current price, that stash is worth about $68 billion (€61.1 billion). That compares with a paper gain of about $4 billion (€3.6 billion) on a total investment of about $64 billion (€57.5 billion).
The start of the fourth quarter was already weak. In a filing on October 5, Strategy valued its coins at about $83,500 (€75,000) each at the end of September. Since then, bitcoin has fallen further, which amounts to about $3 billion (€2.7 billion) in paper losses, while the quarter still has two months to go.
Taxes and ETF Buyers
The tax side is also part of the story. In June, Strategy wrote down a tax asset of $4.12 billion (€3.7 billion) when the bitcoin stash was below its purchase price. That item was reversed again in the third quarter, which according to CoinDesk's calculation added about $4 billion (€3.6 billion) in profit. If bitcoin falls below $75,446 (€67,800), that tax benefit starts disappearing again; around $58,500 (€52,500), the full amount is reversed again.
The broader market is also under pressure. Glassnode estimates that buyers of U.S. spot bitcoin ETFs paid an average of about $81,500 (€73,200), still above the current price. That makes it clear that not only Strategy, but also some ETF investors, are now sitting on a paper loss.
Strategy's financing side also remains relevant for investors. In a recent update on the company's capital structure, it became clear how dividend pressure and bitcoin buying are being weighed against each other more and more often.
Why This Matters
For European crypto followers, this shows how quickly the balance on large bitcoin positions can shift when the price moves. It also shows how closely company results, tax rules, and inflows into spot bitcoin ETFs are tied together. For people tracking bitcoin through funds or corporate balance sheets, that can matter for the market picture, even if it does not lead to an immediate conclusion.
