Strategy's Q3 Net Profit Reaches $2.8 Billion, Stock Price Drops 44% from July Peak, Raising Investor Concerns; Currently Seeking Funding in the International Market
BlockBeats News, October 31st, according to Bloomberg, Strategy released its Q3 financial report after the US stock market closed. Driven by the unrealized gains from its approximately $69 billion cryptocurrency holdings, the company achieved a net profit of $2.8 billion for the quarter.
Despite Bitcoin hitting an all-time high in the third quarter and dozens of public companies emulating Michael Saylor's reserve strategy pioneered five years ago, investors have started to question this strategy. Since reaching a historical high in November last year, Strategy's stock price has fallen by 44.16%, erasing the long-term premium the stock price had enjoyed relative to its Bitcoin holdings over the past few years.
Meanwhile, the demand in the preferred stock market has been tepid. The recent fundraising has fallen far short of Michael Saylor's anticipated blockbuster effect, leading to a slowdown in Bitcoin purchases in recent weeks. CEO Phong Le stated during the conference call that the company is seeking financing in the international market and considering the launch of an ETF backed by preferred stock. MicroStrategy generates approximately $689 million in interest and dividend expenses annually.
Possibly influenced by the financial report news, MSTR rose by 5.71% after hours.
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