【Hoarding Bitcoin brought a $20.9 billion paper gain in one quarter. Who can copy this play? 🚀🔥】
Group chat: 🚀 加入X先生的粉丝群聊
This publicly traded company just released an earnings forecast. In the third quarter, it made an additional $20.9 billion on its Bitcoin holdings. Last quarter, those same coins were down $8.3 billion. From one quarter to the next, its books swung by nearly $30 billion. That number seems almost unreal. But it’s right there in the report. 🚀
The company is Strategy, often called MicroStrategy in Chinese-speaking circles. It’s the publicly traded company with the largest Bitcoin holdings in the world, holding a total of 848,000 bitcoins. When Bitcoin rises, its financial statements take off. When Bitcoin falls, it’s among the first to take a hit. 💼
This gain had absolutely nothing to do with selling coins. It didn’t sell a single one. In fact, in early October it bought another 334, at an average price of $85,839 each. That came to about $28.7 million in total. This was its third consecutive week of adding to its holdings. 🛒
The tax side is even more interesting. Previously, Bitcoin’s price had fallen below its purchase cost, leaving a $4.12 billion tax asset on its books. This quarter, the price rose back above cost, so that tax asset was released. Quarterly tax expenses fell from $6 billion to $1.88 billion. 🧾
Its average cost is about $75,441 per coin. Bitcoin is now hovering around $86,000, so overall its holdings are still in the black. That’s why it dares to keep buying and even buy back shares. Last week, it spent $176 million buying back STRC. It’s also paying a 12% dividend on its preferred stock. 🏦
For ordinary retail investors, the key point isn’t how much it made. It’s that this strategy is heavily dependent on Bitcoin’s price. When Bitcoin rises, the financial statements look good and financing is easier. When it falls, the books can turn against the company just as quickly. A Bitcoin hoard built up with borrowed money amplifies both the gains and the losses. That’s the part to be most cautious about. 😬
📌 That $20.9 billion paper gain came from Bitcoin’s price—not from its business.
Do you think financial reports propped up by Bitcoin prices are sustainable? Let’s discuss in the comments.
Group chat: 🚀 加入X先生的粉丝群聊
This publicly traded company just released an earnings forecast. In the third quarter, it made an additional $20.9 billion on its Bitcoin holdings. Last quarter, those same coins were down $8.3 billion. From one quarter to the next, its books swung by nearly $30 billion. That number seems almost unreal. But it’s right there in the report. 🚀
The company is Strategy, often called MicroStrategy in Chinese-speaking circles. It’s the publicly traded company with the largest Bitcoin holdings in the world, holding a total of 848,000 bitcoins. When Bitcoin rises, its financial statements take off. When Bitcoin falls, it’s among the first to take a hit. 💼
This gain had absolutely nothing to do with selling coins. It didn’t sell a single one. In fact, in early October it bought another 334, at an average price of $85,839 each. That came to about $28.7 million in total. This was its third consecutive week of adding to its holdings. 🛒
The tax side is even more interesting. Previously, Bitcoin’s price had fallen below its purchase cost, leaving a $4.12 billion tax asset on its books. This quarter, the price rose back above cost, so that tax asset was released. Quarterly tax expenses fell from $6 billion to $1.88 billion. 🧾
Its average cost is about $75,441 per coin. Bitcoin is now hovering around $86,000, so overall its holdings are still in the black. That’s why it dares to keep buying and even buy back shares. Last week, it spent $176 million buying back STRC. It’s also paying a 12% dividend on its preferred stock. 🏦
For ordinary retail investors, the key point isn’t how much it made. It’s that this strategy is heavily dependent on Bitcoin’s price. When Bitcoin rises, the financial statements look good and financing is easier. When it falls, the books can turn against the company just as quickly. A Bitcoin hoard built up with borrowed money amplifies both the gains and the losses. That’s the part to be most cautious about. 😬
📌 That $20.9 billion paper gain came from Bitcoin’s price—not from its business.
Do you think financial reports propped up by Bitcoin prices are sustainable? Let’s discuss in the comments.
