Lite Strategy Funds Buybacks With Covered Call Income and LTC in Q3

Lite Strategy, formerly known as MEL Pharma, today reported results for the third quarter of fiscal 2026, covering the period ending March 31, 2026. The company rebranded in late 2025 to focus on adopting Litecoin.

During the quarter, the company bought back 1,491,595 of its own shares at an average price of $1.21 each. Lite Strategy said all purchases were made below book value, meaning the company paid less than the estimated value of its assets per share.

Buybacks move into high gear

The buyback was funded using money earned from its covered call program and the sale of 35,250 Litecoin from its treasury. 

Since October 2025, the covered call program has produced about $0.7 million in net income. The company also reported that every option contract it sold ended without being used (100% out-of-the-money expiry rate), which helped it keep the income earned. 

Lite Strategy said the buyback speed was about 10 times faster than in the second quarter, showing a stronger push to reduce the number of shares in the market. The company is still working under a $25 million buyback plan approved earlier.

Lite Strategy’s Litecoin treasury strategy

Lite Strategy describes itself as the first publicly traded U.S. company to adopt Litecoin as its primary treasury reserve asset. The company uses active treasury management strategies, including covered call options, to generate additional yield from its Litecoin holdings while maintaining exposure to LTC.

CEO and CFO Jay File commented on the results, stating, “The third quarter represented another meaningful step forward in executing our strategy, generating yield on our LTC holdings while taking deliberate action to build lasting value for shareholders.” 

He added that the company focuses on careful spending, as well as generating income. He also said the firm is focused on increasing the amount of Litecoin exposure per share. The main idea is to make each share backed by more LTC over time. 

Moreover, the company said it wants to connect traditional investors with Litecoin through its listed public structure, giving them regulated access to the crypto market.

Regulatory clarity around Litecoin

The firm said that this number is influenced by the wider crypto regulatory space. Lite Strategy cited that in March 2026, the U.S. Securities and Exchange Commission (SEC) issued guidance indicating that Litecoin shows characteristics of a digital commodity. This means it is closer to assets like Bitcoin in classification, rather than being treated like a security.

Charlie Lee, Lite Strategy board member, said, “Regulatory clarity is the tide that lifts all serious digital assets. The SEC’s guidance indicating Litecoin’s classification as a digital commodity is validation of what its community has known for over a decade that LTC is sound, proven, and purposeful money.”

Aside from that, asset management firms have also started offering Litecoin investment products. For instance, Canary Capital in 2025 filed an 8.1 form with the SEC to give investors exposure to the cryptocurrency without them buying it directly. However, the ETF is yet to be approved. 

Looking ahead

Lite Strategy said it plans to continue increasing its covered call trading program to earn more income from its Litecoin holdings. It also plans to keep buying back shares using the $25 million authorization. 

At the same time, it is looking for partnerships and investments that can help grow Litecoin use in the wider market. The pharmaceutical division will also continue its early-stage research, with the hope that it could bring in money through licensing deals or asset sales in the future.

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