French Crypto Executives Propose Taxing Crypto-to-Stablecoin Conversions

French Crypto Executives Propose Taxing Crypto-to-Stablecoin Conversions

by | Oct 5, 2026 | Uncategorized

Three executives from crypto-linked companies have proposed that France tax conversions from crypto assets into regulated stablecoins, a change that would alter when some gains are taxed while keeping other digital-asset trades tax-deferred. Jean Meyer, CEO of Deblock, Damien Patureaux, co-founder of Lyzi, and Pierre Morizot, CEO of Waltio, said the measure would accelerate the use of crypto as a means of payment and reduce the complexity of calculating these taxes for users, according to Bitcoin.com News.

The plan matters because it would shift the taxable event for French holders. Under the proposal, tax would be triggered when crypto is converted into a regulated stablecoin, rather than when a regulated stablecoin is converted into euros, TokenPost reported. The executives said the same gain would be taxed once at the same rate, and that the proposal addresses when gains are taxed, not a new tax rate.

How the crypto-to-stablecoin tax would work

France currently defers taxes on exchanges between digital assets when no additional payment is involved, according to TokenPost. The executives would preserve that treatment for crypto-to-crypto trades and for conversions into nonregulated stablecoins, including USDT and DAI.

Meyer proposed abandoning taxation of crypto capital gains in exchange for taxing crypto-to-stablecoin exchanges, while keeping the exemption on crypto-to-crypto transactions, Bitcoin.com News reported. That shift would move tax calculation complexity to users and exchanges.

The executives also called for changes to how gains are computed. For occasional individual investors, gains are currently calculated using the disposal price and the value and acquisition cost of the holder's overall digital-asset portfolio, according to TokenPost. The executives want gains calculated asset by asset, with losses allowed to carry forward.

Executives cite a 'fiscal singularity'

In an article titled "France has six months not to miss the next industrial wave of agentic AI," the executives argued that "a French holder who converts his bitcoins into [stablecoin] does not trigger any taxation," according to Bitcoin.com News. They said this particularity conveyed no competitive advantage and constituted a fiscal singularity that is paid for in missed revenue and unbuilt infrastructure.

The executives contend the current tax treatment complicates the use of crypto for payments, TokenPost reported. Patureaux and Meyer presented a point of view that resonates with their companies, which provide electronic payment solutions that support crypto and stablecoins, according to Bitcoin.com News.

For Patureaux, the measure would simplify crypto payments for users and entice wider adoption of crypto payments at the merchant level. When paying in crypto, customers ask merchants a lot of questions about taxation, he said, according to Bitcoin.com News.

Undeclared gains and DAC8 data sharing

Morizot, who helms a tax software company, stressed that "the non-taxation of crypto/stablecoin transactions is a sword of Damocles," according to Bitcoin.com News. He said the proposal would prompt a boom in the tax statements of individuals.

The change would prompt higher tax collection from crypto holders alongside the implementation of DAC8, a crypto data-sharing initiative across European Union countries subscribed to by France, which is being expanded to more countries, Bitcoin.com News reported. France has legal provisions and a decree governing information transfers under the DAC8 framework, according to TokenPost.

Chainalysis estimates that over 90% of France's crypto gains go undeclared, considering 2025 data, Bitcoin.com News reported. That figure underpins the executives' argument that the current regime leaves revenue uncollected.

Industry pushback on the crypto-to-stablecoin tax

The proposal has drawn criticism from the native crypto crowd, according to Bitcoin.com News. Claire Balva, General Director of the Association for the Development of Digital Assets (ADAN), stressed that taxation can only happen at a fiat conversion level, as taxes can only be paid in euros, not in bitcoin or stablecoins.

Balva warned that implementing such a measure would push users to make exchanges into stablecoins that are unregulated in the EU, like USDT, Bitcoin.com News reported. Because the proposal would preserve tax deferral for conversions into nonregulated stablecoins such as USDT and DAI, critics say it could steer activity away from regulated tokens.

Nonetheless, Balva explained that this is still just a proposal and that no changes to the current tax regime are expected to be passed, according to Bitcoin.com News.

What comes next for the crypto-to-stablecoin tax

For now, the crypto-to-stablecoin tax remains an industry proposal rather than draft legislation. The executives have framed it as a way to tax the same gain once at the same rate while simplifying payments, and their call for asset-by-asset gain calculation with loss carry-forward would require changes to how occasional investors report, according to TokenPost.

Any shift would intersect with France's implementation of DAC8 data sharing, which the country has already written into legal provisions and a decree, TokenPost reported. With the measure still only a proposal and no changes expected to pass, the current regime deferring tax on digital-asset exchanges remains in place.

Conclusion

Three French crypto executives have proposed taxing conversions from crypto assets into regulated stablecoins, moving the taxable event earlier while keeping crypto-to-crypto trades and nonregulated stablecoin conversions tax-deferred. They argue the change would simplify payments and capture gains that largely go undeclared, while industry group ADAN counters that taxation can only occur at fiat conversion and warns the plan could push users toward unregulated stablecoins. The proposal remains only a proposal, and no changes to the current tax regime are expected to be passed, according to Bitcoin.com News.

Frequently Asked Questions

Who proposed taxing crypto-to-stablecoin conversions in France?

Jean Meyer, CEO of Deblock, Damien Patureaux, co-founder of Lyzi, and Pierre Morizot, CEO of Waltio, proposed taxing conversions from crypto assets into regulated stablecoins. The three executives from crypto-linked companies said the change would accelerate crypto's use as a means of payment and reduce tax calculation complexity for users, according to Bitcoin.com News.

How would the French crypto-to-stablecoin tax proposal change current rules?

France currently defers taxes on exchanges between digital assets when no additional payment is involved. The proposal would move the taxable event from converting a regulated stablecoin into euros to converting crypto into a regulated stablecoin, while preserving deferral for crypto-to-crypto trades and conversions into nonregulated stablecoins such as USDT and DAI, TokenPost reported.

Would the proposal create a new tax rate on crypto gains?

No. The executives said the same gain would be taxed once at the same rate, and that the proposal addresses when gains are taxed, not a new tax rate, according to TokenPost. They also called for calculating gains asset by asset and allowing losses to carry forward.

Why do the executives say France should tax crypto-to-stablecoin conversions?

They argue that a French holder converting bitcoin into a stablecoin currently triggers no taxation, calling it a fiscal singularity paid for in missed revenue and unbuilt infrastructure, according to Bitcoin.com News. Chainalysis estimates over 90% of France's crypto gains go undeclared in 2025 data, and the change would coincide with DAC8 data sharing.

Is France expected to adopt the crypto-to-stablecoin tax?

No changes are expected. Claire Balva, General Director of ADAN, said taxation can only happen at a fiat conversion level because taxes are paid in euros, and warned the measure could push users toward unregulated stablecoins like USDT. She said it is still just a proposal and no changes to the current tax regime are expected to pass, according to Bitcoin.com News.

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RBI Cautious on Crypto but Backs Blockchain Technology, Governor Malhotra Says

RBI Cautious on Crypto but Backs Blockchain Technology, Governor Malhotra Says

by | Oct 5, 2026 | Policy & Regulations

The RBI cautious on crypto stance was reaffirmed on Saturday, with Governor Sanjay Malhotra saying India continues to treat digital assets warily while actively supporting the technologies that underpin them. Speaking at the fifth Kautilya Economic Conclave in New Delhi, Malhotra said the central bank backs innovation in distributed ledger technology and tokenisation but remains guarded about crypto assets themselves.

The remarks matter because they reaffirm the RBI's long-held position at a time when India is developing its own digital rupee and applying tax and compliance rules to private digital assets. Malhotra's comments draw a clear line between the technology, which the central bank is already exploring, and private cryptocurrencies, which it views as a risk to monetary stability.

Why the RBI Cautious on Crypto Position Persists

Malhotra said India's concerns about cryptocurrencies centre on monetary sovereignty, the conduct of monetary policy and the management of capital flows. He linked the issue to the concept of the singleness of money, the idea that money should hold a uniform value, and warned that alternative forms of money could weaken monetary policy transmission.

The risks are especially acute for emerging market economies that maintain restrictions on capital flows, he said. ANI reported that the governor flagged worries over the singleness of money and the conduct of monetary policy, and he pointed to the complications that arise where capital movement is controlled.

The governor separated the tools behind digital assets from the assets themselves, Outlook Money reported. He said the central bank endorses these tools and has already put some of them into use, with certain applications being explored by the RBI and through public-private partnership initiatives.

Cross-Border Payments and the Digital Rupee

The governor argued that the problem crypto assets claim to solve is not domestic payments, which in India and many other countries are already efficient. "The problem that you are trying to address is primarily not so much of domestic payments, because domestic payments within our country and in many countries now are quite fast, cheap and convenient," he said.

The more significant challenge, Malhotra said, lies in cross-border payments, where he suggested central bank digital currencies could offer a solution. He said other options, including CBDCs, can be explored to improve international transactions, placing the digital rupee within the debate on upgrading cross-border payment systems without relying on private cryptocurrencies.

The RBI has been building and trialling the digital rupee even as it holds a guarded line on private crypto assets. The RBI cautious on crypto approach pairs support for financial technology with strict oversight of private digital assets, which remain outside the country's official currency system even as they are subject to tax and compliance requirements.

Bond Yields, Debt and Monetary Policy

Turning to global economic conditions, Malhotra addressed rising public debt and hardening bond yields worldwide. He said yield movements are essentially a function of demand and supply, with spending by governments and private enterprises increasing, including expenditure driven by artificial intelligence.

Malhotra said, "Money is scarce, spending has increased, both by the government as well as private enterprises, led by AI, and so that's what is leading to the hardening of the bond yields and debts."

On monetary policy, Malhotra said the RBI's approach remains primarily focused on domestic growth and inflation dynamics. He added, however, that global interest rates also have implications for India, including through their effect on real interest rates in the country. "That is something that we need to take care of," he said, noting that the central bank must remain attentive to international rate movements.

Financial Stability and the Limits of Resilience

Malhotra delivered a special address titled "Preserving Financial Stability in an Evolving World" at the conclave on 3 October 2026, according to PSU Connect. He cautioned that the financial system's current resilience should not be mistaken for protection against future vulnerabilities and called for continued vigilance.

Malhotra said, "Today's resilience may not necessarily imply tomorrow's immunity, and we are committed to remain vigilant of emerging vulnerabilities and continue to keep our financial system strong and resilient," pointing to the healthy balance sheets of banks and non-banking financial companies. He recalled that cleaning up the bad-loan legacy left by the excessive lending of the early 2000s took close to ten years, and invoked Minsky's Financial Instability Hypothesis to warn that prolonged stability can encourage excessive risk-taking.

He said shocks, whether originating inside or outside the system, cannot be avoided, so the goal should be a financial system that keeps delivering services even under severe stress. Malhotra concluded with five priorities for policymakers, including accepting that some shocks are inevitable, strengthening data and monitoring, ensuring resilience across the entire financial system and making sure innovation reinforces rather than erodes trust, PSU Connect reported.

Conclusion

Malhotra's remarks at the Kautilya Economic Conclave reaffirm the RBI cautious on crypto framework: wariness of private cryptocurrencies over concerns about monetary sovereignty, policy and capital flows, alongside active support for distributed ledger technology, tokenisation and the digital rupee. The central bank continues to develop and test its CBDC while private crypto assets remain outside India's official currency system. The next concrete step in this framework is the RBI's ongoing work on the digital rupee as a potential tool for cross-border payments.

Frequently Asked Questions

What did RBI Governor Sanjay Malhotra say about cryptocurrencies at the Kautilya Economic Conclave?

Speaking at the fifth Kautilya Economic Conclave in New Delhi on Saturday, Malhotra said India continues to treat cryptocurrencies with caution, citing worries over monetary sovereignty, the conduct of monetary policy and capital flows, while supporting innovation in the underlying technologies such as distributed ledger and tokenisation.

Why is the RBI cautious about crypto assets?

Malhotra said cryptocurrencies raise concerns related to the singleness of money and their potential impact on monetary policy. He added that the risks are greatest for emerging market economies that maintain controls on capital flows, and he linked the debate to monetary sovereignty.

What did Malhotra say about CBDCs and cross-border payments?

The governor said the more significant challenge is cross-border payments, not domestic payments, which are already fast, cheap and convenient in India. He said other solutions, including central bank digital currencies, can be explored to improve international transactions.

What did the RBI Governor say about rising bond yields and global debt?

Malhotra said yield movements are driven mainly by demand and supply conditions, as spending by governments and private companies climbs, including outlays tied to artificial intelligence. He said money is scarce and spending has increased, which is leading to the hardening of bond yields and debts.

How is India regulating private cryptocurrencies while developing the digital rupee?

The central bank is building and trialling its digital rupee even as it keeps a guarded stance toward private crypto assets. Transactions in such assets fall under tax and compliance rules, yet private cryptocurrencies still sit outside the country's official currency framework.

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Evernorth XRP Treasury Wins Shareholder Vote, Clearing Path to Nasdaq Debut as XRPN

Evernorth XRP Treasury Wins Shareholder Vote, Clearing Path to Nasdaq Debut as XRPN

by | Oct 5, 2026 | Altcoin News

Shareholders of Armada Acquisition Corp. II approved the business combination with Evernorth Holdings at an extraordinary general meeting on September 30, 2026, clearing the path for the Evernorth XRP treasury to go public. The deal is expected to close on October 7, with Class A common stock of the combined company, Evernorth Holdings, Inc., set to begin trading on Nasdaq under the ticker "XRPN" on October 8, according to the companies.

The vote matters because it removes the last major hurdle before what the companies describe as the largest publicly traded pure-play XRP treasury company reaches the market. At closing, Evernorth expects to hold approximately 473 million XRP, a position valued at roughly $710 million at recent prices near $1.50 per token.

Vote count and deal terms

Roughly 20.5 million votes were cast in favor of the combination against 1.4 million opposed, AD HOC NEWS reported, with the companies announcing the result on October 1, 2026. The approval came about five weeks after the U.S. Securities and Exchange Commission declared Evernorth's registration statement effective on August 27; the company first filed its Form S-4 for the $1 billion SPAC deal in March.

The transaction and accompanying private placements have raised more than $1 billion in total, Evernorth said. The cash side of the deal breaks down into roughly $225 million raised through related private placements, another $30 million from convertible note financing and about $48 million still sitting in Armada II's trust account, according to the companies.

Investors have also contributed XRP in kind, and that cash figure is distinct from the tokens put directly into the transaction. Evernorth's investor roster includes Arrington Capital, SBI Group, Ripple, Pantera Capital, Kraken and GSR, among others.

Where the XRP comes from

CryptoPotato's reporting, cited by CryptoRank, traces where the tokens behind the Evernorth XRP treasury originated. The single biggest contribution, 211.3 million tokens, came from RippleWorks, which placed them into the SPAC's sponsor, Arrington XRP Capital Fund; when the deal closes, the sponsor is required to swap those tokens for Evernorth shares and to vote them in line with RippleWorks' instructions.

Ripple put in 126.8 million XRP of its own at the time the merger agreement was signed, while another 50 million tokens are coming from the Larsen Lam Children's Remainder Trust, according to that reporting. Evernorth's balance sheet already shows about 347 million XRP before the token contributions expected when the deal closes, based on BitcoinTreasuries data cited by The Block and CoinCentral.

CryptoPotato also reported that $214 million of the private placement funds went toward purchasing 84.4 million XRP in late 2025 at an average price of $2.54 per token, with an additional $30 million raised through convertible notes sold in September, CryptoRank reported.

Impairments highlight treasury model risk

According to CryptoPotato's account of the proxy statement's financial statements, Evernorth values 346.3 million of its XRP at a cost basis of $846.6 million, with a June 30 book value of $348.8 million after large write-downs. Under Evernorth's accounting approach, XRP is recorded at cost and then marked down to the lowest intraday price reached since each lot was acquired, with no upward revision if the token's price later recovers.

The gap between the $2.54 average purchase price reported by CryptoPotato and XRP's current level near $1.50 underscores how exposed such treasury models are to drawdowns, CryptoRank reported, adding that the impairment figures in Evernorth's own statements make that exposure concrete rather than theoretical.

An active Evernorth XRP treasury strategy

Evernorth says its goal is to increase the amount of XRP backing each share over time, using yield strategies, participation in the XRP ecosystem and capital markets activities. Rather than treating its holdings as a passive balance-sheet item, it plans to deploy them actively across the XRP Ledger ecosystem, AD HOC NEWS reported.

"Going public will offer investors a regulated, transparent way to own XRP exposure and participate in the growth of the blockchain economy," said Asheesh Birla, founder and CEO of Evernorth. Birla added, "We're grateful to our shareholders for their support as we complete this important transaction."

Buyers of the stock will own shares in Evernorth rather than the token itself, so their returns will hinge on the company's capital structure and execution as well as on XRP's price, Dealroom noted. The vehicle joins spot XRP ETFs as a regulated route to XRP exposure, The Block reported; U.S. spot XRP ETFs took in $121.4 million in net inflows during September, and those funds held $1.69 billion in net assets as of September 29, according to AD HOC NEWS.

What comes next for the XRPN listing

The deal still has to meet or obtain waivers for its remaining closing conditions, and the start of trading hinges on Nasdaq granting listing approval. Evernorth said all funders remain committed to the expected closing, with 100% of advanced and delayed funders participating.

XRP traded around $1.50 at publication time, giving it a market capitalization above $93 billion, after finishing the third quarter more than 40% higher. The clearest read on how investors view the pure-play XRP treasury model will come from how the shares are priced at debut against the treasury's implied value of about $710 million, CryptoRank reported.

Conclusion

Armada II shareholders approved the Evernorth business combination on September 30, 2026, by a wide margin, setting up an expected October 7 close and a Nasdaq debut under the ticker XRPN on October 8. The combined company expects to hold roughly 473 million XRP, valued near $710 million, alongside about $300 million in gross cash proceeds from a fundraising topping $1 billion. The next concrete step is satisfying or waiving the remaining closing conditions and securing Nasdaq listing approval; the transaction has not yet closed, so the listing timetable remains conditional.

Frequently Asked Questions

When will Evernorth start trading on Nasdaq under the ticker XRPN?

Evernorth expects its Class A shares to start changing hands on Nasdaq under the symbol "XRPN" on October 8, 2026, one day after the business combination with Armada II is expected to close on October 7. The timetable remains subject to the satisfaction or waiver of remaining closing conditions and Nasdaq listing approval.

How much XRP will Evernorth hold at closing?

Evernorth expects its holdings to reach approximately 473 million XRP when the deal closes, a level it says would establish it as the biggest publicly traded company focused purely on an XRP treasury. At recent prices near $1.50 per token, that position is valued at roughly $710 million. Ahead of in-kind contributions expected at closing, the company currently holds about 347 million XRP.

How much cash is the Evernorth and Armada II deal expected to raise?

Gross cash proceeds are projected at about $300 million: private placements account for roughly $225 million, convertible notes for another $30 million, and Armada II's trust account contributes approximately $48 million. Evernorth said total proceeds from the deal and accompanying private placements exceed $1 billion, including XRP contributed in kind.

Who are Evernorth's investors in the $1 billion XRP treasury deal?

Evernorth's investors include Arrington Capital, SBI Group, Ripple, Pantera Capital, Kraken and GSR, among others. Some backers contributed XRP directly: RippleWorks supplied 211.3 million tokens through the SPAC's sponsor, Ripple contributed 126.8 million XRP when the merger agreement was signed, and 50 million came from the Larsen Lam Children's Remainder Trust.

How did Armada II shareholders vote on the Evernorth merger?

Shareholders approved the business combination at an extraordinary general meeting on September 30, 2026, with roughly 20.5 million votes cast in favor against 1.4 million opposed, AD HOC NEWS reported. The companies announced the result on October 1, 2026, clearing the last major hurdle before the expected October 7 close.

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TeraWulf Doubles Muskie Data Campus Contracted Power to 1 GW

TeraWulf Doubles Muskie Data Campus Contracted Power to 1 GW

by | Oct 5, 2026 | Business

TeraWulf Inc. (Nasdaq: WULF) said on Monday, October 5, 2026, that it has doubled contracted power at its Muskie Data Campus in eastern Kentucky, lifting committed capacity from 500 megawatts to 1 gigawatt under a reworked power supply deal with Kentucky Power, which is part of American Electric Power.

The Muskie Data Campus is being developed for artificial intelligence and high-performance computing workloads, and the larger power commitment gives TeraWulf a bigger block of future capacity to market to prospective customers. The company acquired the site in May 2026 for phased development as an AI and HPC campus.

Muskie Data Campus agreement details

The amendment also moves up the planned delivery of the Muskie Data Campus's second 500 MW phase to 2029 from 2030, according to the company's announcement. Both the expanded capacity and the accelerated timeline remain subject to approval by the Kentucky Public Service Commission and to Kentucky Power's construction schedule.

The first 500 MW phase at the Muskie Data Campus remains targeted to begin ramping in 2028. TeraWulf plans to bring the site online in stages rather than all at once, and the two 500 MW phases together account for the full 1 GW now under contract.

Contracted power is not the same as live capacity, and the first meaningful capacity at the site is not targeted until the second half of 2028, meaning revenue from the campus sits years in the future, Crypto Briefing reported.

Utility structure and regulatory path

TeraWulf said the amendment follows its approach to large-scale development in Kentucky: coordinating with the utility on the infrastructure needed to serve the campus, providing financial protections for utility investment and structuring the agreement to benefit existing customers. To supply the site, Kentucky Power is building a substation with 765-kV and 345-kV lines that ties into the regional transmission network.

Under the arrangement, TeraWulf will also cover what it estimates Kentucky Power will spend to finance a 760 MW combined-cycle gas plant planned for Big Sandy, Stocktwits reported. Kentucky Power said the structure keeps the cost of serving the added demand off existing customers, and that residential customers would receive $100 million in winter bill credits spread across the contract's first 10 years, according to the company.

The utility expects to file the amended contracts with regulators later this year, and the agreement still requires Kentucky Public Service Commission approval. The company said work on the site will follow Governor Beshear's Executive Order on Data Center Development (2026-494).

In August, the commission signed off on a separate electric service agreement covering TeraWulf's Justified Data Campus in Hawesville, determining that the terms sufficiently safeguarded existing customers and properly divided the costs and risks tied to serving that project.

Prager on customer demand

Chairman and Chief Executive Officer Paul Prager pointed to demand for the site in announcing the expanded agreement. "Customer interest in Muskie has been tremendous, and power availability is central to those conversations," Prager said.

Prager had previously expressed optimism about scaling the site to as much as 2 GW, saying on the company's Q2 2026 earnings call on August 5 that abundant near-term power availability and existing infrastructure around the campus made a larger build look achievable, Crypto Briefing reported. The 2 GW figure remains an intention rather than a contract; TeraWulf has not said it has secured that much power.

Portfolio and market reaction

TeraWulf bought the Muskie Data Campus from Industrial Equity Partners on May 22, 2026, and the site was described at the time as adding over 1 GW of planned AI/HPC capacity, according to Crypto Briefing. The campus sits inside a 1,000-acre industrial park and is positioned as one of the company's largest scalable development sites in Kentucky.

The company's business is building, owning and running large-scale, power-backed digital infrastructure across the United States, with facilities designed for HPC and AI workloads. It operates the Lake Mariner Data Campus in New York, where portions of existing bitcoin-mining infrastructure are being repurposed to support contracted HPC development, while further large-scale campuses are being developed or pursued across Kentucky, New York and Maryland.

WULF stock edged lower on Monday morning, snapping a two-day winning streak after the announcement, Stocktwits reported. The shares have gained over 30% so far this year and are up over 12% in the last 12 months.

What comes next for the Muskie Data Campus

The milestones to watch are updates on customer agreements for Muskie, progress toward the 2028 first phase and any additional power commitments that would move the 2 GW goal from aspiration to contract, according to Crypto Briefing.

TeraWulf cautioned that its statements about anticipated future events are forward-looking and subject to risks and uncertainties, and that there can be no assurance future developments will match expectations. The company said it does not assume any obligation to publicly update forward-looking statements except as required by law, and referred investors to the risk factors in its SEC filings.

Conclusion

TeraWulf's amended agreement with Kentucky Power doubles contracted power at the Muskie Data Campus to 1 GW and pulls the second 500 MW phase forward to 2029 from 2030, with the first phase still targeted to ramp in 2028. The next concrete steps are Kentucky Power's filing of the amended contracts with regulators later this year and the Kentucky Public Service Commission's decision on approval, which the expansion and the accelerated timeline both require.

Frequently Asked Questions

How much power has TeraWulf contracted at the Muskie Data Campus?

TeraWulf has contracted 1 gigawatt of power at the Muskie Data Campus in eastern Kentucky, up from 500 megawatts, under a reworked electric service agreement with Kentucky Power announced on October 5, 2026. The 1 GW is split into two 500 MW phases.

When will the Muskie Data Campus come online?

The first 500 MW phase is targeted to begin ramping in 2028, with the first meaningful capacity expected in the second half of that year. The second 500 MW phase was moved up to 2029 from 2030, subject to regulatory approval and Kentucky Power's construction schedule.

Does the TeraWulf Kentucky Power agreement need regulatory approval?

Yes. The amended agreement requires approval from the Kentucky Public Service Commission, and Kentucky Power expects to file the amended contracts with regulators later this year. In August, the commission approved a separate agreement for TeraWulf's Justified Data Campus in Hawesville.

What does the Muskie deal mean for Kentucky Power residential customers?

According to the company, Kentucky Power said residential customers would receive $100 million in winter bill credits spread across the contract's first 10 years, about $25 per month for a typical household in the winter heating season. TeraWulf will also pay estimated financing costs for Kentucky Power's planned 760 MW gas plant at Big Sandy.

Could the Muskie Data Campus expand to 2 GW?

CEO Paul Prager said on the August 5 Q2 2026 earnings call that the site could scale to as much as 2 GW, citing near-term power availability and existing infrastructure. TeraWulf has not contracted that amount; the 2 GW figure remains a stated intention rather than a commitment.

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Strategy Bitcoin Purchase of 334 BTC Trails $176M STRC Buyback as Firm Posts $21B Q3 Gain

Strategy Bitcoin Purchase of 334 BTC Trails $176M STRC Buyback as Firm Posts $21B Q3 Gain

by | Oct 5, 2026 | Bitcoin

The latest Strategy Bitcoin purchase totaled 334 BTC for $28.7 million between October 1 and 4, while the company spent $176.3 million to repurchase its own Stretch (STRC) preferred stock, according to a Monday filing that also estimated a $20.91 billion third-quarter gain on digital assets.

The buy lifted Strategy's holdings to exactly 848,000 BTC, a record, but the capital split shows preferred-stock support now rivals coin accumulation: the company directed roughly six times as much money at STRC repurchases as at Bitcoin during the period.

Inside the Latest Strategy Bitcoin Purchase

The 334 coins were acquired at an average of $85,838.80 each, funded with $15.7 million in net proceeds from the sale of 92,894 Class A common shares and $13 million drawn from the company's USD Cash pool.

The buy extends a three-week accumulation streak, though it came in at roughly a fifth of the prior week's 1,665 BTC acquisition, according to tradersunion. CoinGape described it as one of the company's smallest buys this year.

Strategy has now spent a total of $63.97 billion building its position, an average of $75,440.70 per coin, meaning last week's coins cost nearly 14% more than its existing basis. At a Bitcoin price near $86,138, the holdings are worth roughly $72.4 billion.

The Block reported that the stash equals more than 4% of Bitcoin's 21 million supply cap and implies around $9 billion of paper gains at current prices. Co-founder and executive chairman Michael Saylor put the total cost at around $64 billion including fees and expenses.

STRC Buybacks Dwarf Coin Buying

Strategy repurchased 1,033,168 STRC shares for $102.6 million in the final days of September and another 740,634 shares for $73.7 million in the first four days of October, totaling about 1.77 million shares for $176.3 million.

The financing split underscores the priority: $154.1 million from USD Cash went to STRC repurchases versus $13 million from the same pool for Bitcoin, with another $22.2 million of buybacks funded by interest earned on cash, cash equivalents and short-term investments.

The repurchases are part of an effort to keep STRC trading near its $100 issue price, and the preferred stock has traded below par for months, tradersunion reported. Strategy said last week it would maintain STRC's 12% dividend rate until the stock trades steadily near that level, according to BeInCrypto.

The buyback program has $547.2 million remaining, and the company issued no preferred shares from any of its four lines via the at-the-market facility in either reporting window. STRC traded at $99.45 in premarket activity Monday, near its stated amount, while MSTR rose 2.9% to $164.60, according to Yahoo Finance data cited by Cointelegraph.

A $20.91 Billion Quarterly Gain

The filing estimated a $20.91 billion gain on digital assets for the third quarter ended September 30, the largest figure in the disclosure. Because Strategy marks Bitcoin at fair value, the number reflects price appreciation across the quarter and carries $1.88 billion of associated deferred tax expense.

The recovery also let the company reverse a $4.12 billion deferred tax asset recorded as of June 30, when Bitcoin's fair value sat below cost basis. Strategy estimated its digital asset carrying value at $70.82 billion as of September 30.

Saylor disclosed the headline figure in a post, stating that the company booked a $21 billion Q3 2026 gain on its digital assets. He added, "USD Duration is 3.6 yrs and STRC's BTC Credit is 50 bps assuming 10% BTC ARR, 40% BTC Vol, and a BTC price of $84,289."

Despite the gain, net accumulation slowed sharply: Strategy's holdings rose just 0.2% during the quarter as sales offset most purchases, compared with a nearly 11% increase in the second quarter, Cointelegraph reported. The company spent about $1.38 billion repurchasing STRC during the quarter.

Cash Reserves and the Dividend Vote

Strategy now holds its dollars in two pools: a $4.88 billion USD Reserve earmarked for preferred dividends and debt interest, plus $833.4 million of USD Cash available for general corporate uses, Bitcoin buying among them. During the week ended October 4, the company pulled $142.5 million out of the reserve to cover dividend and interest obligations.

In a separate proxy filed Monday, the company is asking shareholders to approve moving STRC, STRF, STRK and STRD to dividends paid each business day, doing away with STRC's twice-monthly cadence and the quarterly schedule on the other three, Cointelegraph reported. If approved, STRC's daily schedule would start in November and the others in January.

Shareholders vote on the plan October 28, arriving as more of the company's cash flows to preferred shares than to new Bitcoin, according to BeInCrypto. The company said the proposal would not change dividend rates or overall payment obligations.

Over the weekend, gold advocate Peter Schiff contended that Strategy can no longer tap STRC for fresh capital and so has lost its ability to finance further Bitcoin buying. "There's no way that he's going to be able to start selling more Stretch; that means he's not going to be able to raise money to really start buying more Bitcoin," Schiff said, according to BeInCrypto.

Peers and Market Context

Smaller rival Strive disclosed a bigger purchase the same morning, buying 2,000 BTC between September 28 and October 2 at an average of $84,422 each, about $169 million, lifting its holdings to 29,462 BTC. Its filing also shows Strive holds 505,000 STRC shares worth $50.2 million — the same preferred shares Strategy is buying back.

Metaplanet, another Bitcoin treasury company, unloaded 10,000 BTC in the third quarter and later repurchased 11,000, a round trip intended to demonstrate to credit rating agencies that it could convert Bitcoin into cash on demand. Per Bitcoin Treasuries data cited by The Block, 196 public companies have adopted some form of Bitcoin acquisition model.

MSTR shed 7.1% over the course of last week to end Friday's session at $160.01, according to The Block's price page, before rising in premarket trading Monday on the filing. As of October 4, $18.83 billion in MSTR shares remained available under its at-the-market program.

Conclusion

Strategy's Monday filing established three things: a record 848,000 BTC treasury after a modest 334-coin buy, a $20.91 billion estimated third-quarter gain on digital assets, and $176.3 million spent repurchasing STRC — roughly six times its weekly Bitcoin outlay. The next concrete step is the October 28 special meeting, where shareholders will vote on moving all four preferred stocks to daily dividend payments, with STRC's new schedule slated to begin in November if approved.

Frequently Asked Questions

How much Bitcoin did Strategy buy in its latest purchase?

Strategy bought 334 BTC for $28.7 million between October 1 and 4, paying an average of $85,838.80 per coin. The purchase lifted its total holdings to exactly 848,000 BTC, acquired for a combined $63.97 billion at an average of $75,440.70 per coin.

Why did Strategy spend $176.3 million on STRC buybacks?

Strategy repurchased about 1.77 million STRC preferred shares for $176.3 million across late September and early October as part of an effort to keep the stock trading near its $100 issue price. STRC has traded below par for months, and the company has pledged to maintain its 12% dividend rate until it trades steadily near that level.

What was Strategy's third-quarter gain on digital assets?

The company estimated a $20.91 billion gain on digital assets for the quarter ended September 30, with $1.88 billion of associated deferred tax expense. Because Strategy marks Bitcoin at fair value, the figure reflects price appreciation across the quarter, and it allowed the reversal of a $4.12 billion deferred tax asset.

When do Strategy shareholders vote on daily preferred dividends?

Shareholders vote October 28 at a special meeting on a proposal to pay dividends on STRC, STRF, STRK and STRD every business day. If approved, STRC's daily schedule would start in November and the other three preferred stocks would follow in January, with no change to dividend rates.

How did Strategy fund its latest 334 BTC purchase?

Strategy sold 92,894 MSTR Class A common shares, raising $15.7 million in net proceeds that went entirely toward Bitcoin, and drew another $13 million from its USD Cash pool. No preferred shares were sold through its at-the-market program during the period.

Sources

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