Bitcoin News Today: MicroStrategy’s Bitcoin Gains Drive Up Profits, Yet Shares Tumble Amid Market Skepticism Over Long-Term Strategy
- MicroStrategy reported $2.8B Q3 net profit from its $68B Bitcoin treasury, with 640,808 BTC holdings generating $12.9B in gains. - Despite record earnings, MSTR stock fell 44% since July due to reduced Bitcoin volatility and macroeconomic risks, trading at $254.57 vs. $400 peak. - The firm raised $43.4M for 390 BTC in October while issuing preferred shares (STRC/STRD) to fund growth, despite shareholder concerns over dilution. - CEO Phong Le aims to build global digital loan infrastructure, while co-foun
MicroStrategy (MSTR), recognized as the largest public company holding
The company posted diluted earnings per share of $8.42 for Q3, exceeding what analysts had predicted, according to
Nevertheless, the 44% fall in share price since July has diminished the premium the stock once held over its Bitcoin assets.
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
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
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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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