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

On October 31st, as reported by Bloomberg, Strategy disclosed its Q3 financial report following the close of the US stock market. Thanks to the unrealized gains from its approximately $69 billion cryptocurrency holdings, the company achieved a net profit of $2.8 billion during the quarter. Although Bitcoin reached an all-time high in the third quarter and dozens of public companies followed Michael Saylor's reserve strategy initiated five years ago, investors have begun to question this strategy. Since hitting a historical high in November last year, Strategy's stock price has dropped by 44.16%, wiping out the long-term premium that the stock price had held relative to its Bitcoin holdings in the past few years. Meanwhile, the demand in the preferred stock market has been lackluster. The recent fundraising has fallen far short of Michael Saylor's anticipated blockbuster effect, resulting in 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 incurs approximately $689 million in interest and dividend expenses annually. Possibly due to the financial report news, MSTR rose by 5.71% after hours.