Bitcoin News Today: MicroStrategy’s Bitcoin Gains Drive Up Profits, Yet Shares Tumble Amid Market Skepticism Over Long-Term Strategy

MicroStrategy (MSTR), recognized as the largest public company holding

, announced on October 30 that it achieved a net income of $2.8 billion in the third quarter, primarily due to profits from its $68 billion Bitcoin reserves. Despite these unprecedented profits, the company's stock has dropped 44% since its peak in July, causing investor unease as MicroStrategy intensifies its search for funding in global markets, as reported by .

The company posted diluted earnings per share of $8.42 for Q3, exceeding what analysts had predicted, according to

. MicroStrategy currently owns 640,808 Bitcoins, valued at $70.9 billion, which have generated $12.9 billion in profits so far this year—a 26% return, according to . CEO Phong Le stated in a conference call that the firm is "expanding its digital loan issuance capabilities globally" to become a top international lender, as noted by .

Nevertheless, the 44% fall in share price since July has diminished the premium the stock once held over its Bitcoin assets.

shares ended at $254.57 on October 30, a significant drop from the July high of $400, according to Lookonchain. This decline is linked to reduced Bitcoin volatility and broader economic uncertainty, with prediction market traders giving just an 18% probability that the company will surpass earnings forecasts in upcoming quarters, as reported by .

MicroStrategy's pace of Bitcoin purchases has slowed recently as it shifts focus to preferred stock offerings and international fundraising. In late October, the company spent $43.4 million to acquire 390 Bitcoins, marking its largest purchase since September, according to

, and has also introduced preferred shares such as STRC and STRD to support further acquisitions. These new instruments, which pay quarterly dividends, have received mixed feedback, with some investors expressing concern about the potential dilution for common shareholders, per Lookonchain.

Despite recent market volatility, company co-founder Michael Saylor remains optimistic about Bitcoin's future. He reaffirmed his $150,000 price target for the end of 2025, pointing to growing institutional interest and a "21% surge" in Bitcoin's value as key drivers, according to Investor Empires. Saylor also underscored the opportunity for Bitcoin-backed lending markets to deliver higher yields than traditional debt, a vision that guides MicroStrategy's long-term approach, as reported by BitcoinSistemi.

The company's significant exposure to Bitcoin has attracted regulatory attention, with S&P Global downgrading MSTR to a B- junk rating in October. The rating agency highlighted liquidity challenges, noting that MicroStrategy is obligated to pay $640 million annually in preferred stock dividends and faces $5 billion in convertible bonds due by 2028, according to

. S&P cautioned that a sharp decline in Bitcoin's price could force the company to liquidate assets at a loss to meet its commitments.

As MicroStrategy works through these headwinds, it is considering launching an ETF backed by preferred shares and is broadening its capital-raising activities beyond the U.S., according to Lookonchain. With Bitcoin trading close to $115,000 and the company's Bitcoin reserves valued at $73.7 billion, per GuruFocus, MicroStrategy's strategy continues to represent a bold wager on the long-term prospects of cryptocurrency.