Strategy Q3 net profit reaches $2.8 billion, stock price drops 44% from July peak raising investor concerns, currently seeking financing in international markets

BlockBeats News, October 31, according to Bloomberg, Strategy released its Q3 financial report after the US stock market closed. Driven by unrealized gains from its approximately $69 billion cryptocurrency holdings, the company achieved a net profit of $2.8 billion for the quarter.

Although bitcoin reached an all-time high in the third quarter and dozens of listed companies have followed the reserve model pioneered by Michael Saylor five years ago, investors have begun to question this strategy. Since the stock price hit an all-time high last November, Strategy's share price has fallen by 44.16%, erasing the long-term premium of its stock price relative to its bitcoin holdings over the past few years.

Meanwhile, demand in the preferred stock market remains weak. Recent fundraising efforts have fallen far short of Michael Saylor's anticipated sensational effect, resulting in a slowdown in bitcoin purchases in recent weeks. CEO Phong Le stated during a conference call that the company is seeking to raise funds in international markets and is considering launching an ETF backed by preferred stock. MicroStrategy incurs approximately $689 million annually in interest and dividend expenses.

Possibly influenced by the financial report, MSTR rose 5.71% after hours.