#比特币
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$2.696 million in revenue turned into $509 million in net profit—a 189-fold difference
On November 6, Nasdaq-listed Bitcoin treasury company Strive filed its third-quarter report with the SEC.
Net profit was $509 million, compared with a $207 million loss in the same period last year. But $534 million of that came from unrealized gains on Bitcoin 💰
Revenue was only 0.5% of net profit. Almost all of the profit came from the mark-to-market revaluation of its holdings.
More importantly, consider the purchase price.
In the third quarter, Strive bought 8,136 bitcoins at an average price of $78,885 each.
As of September 30, the company held a total of 28,000 bitcoins, with a fair value of about $2.34 billion.
Today, Bitcoin is trading at $75,702, down 4.88% in 24 hours.
At current prices, those 28,000 bitcoins are worth only about $2.12 billion—a drop of roughly $220 million in just over a month 📉
The batch bought in the third quarter alone is already sitting on an unrealized loss of about $25.9 million.
Where did the money come from?
In the third quarter, the company raised about $783 million in total through common and preferred stock offerings.
In October, it completed another preferred stock offering, raising about $609 million net.
That comes to $1.392 billion, with the main move being to convert it into Bitcoin.
This strategy acts as an amplifier when Bitcoin prices rise, but becomes reverse leverage when prices fall ⚠️
My take
These profits say nothing about operational strength. They only show that the company holds enough Bitcoin for its financial statements to move with the price.
The two figures to really watch are the discount of its market cap to the net value of its Bitcoin holdings, and the pace of share issuance.
Once the discount widens, continuing to issue shares to buy Bitcoin dilutes existing shareholders.
If Bitcoin stays in the $75,000–$76,000 range in the fourth quarter, the company will have to book an impairment loss of about $220 million—enough to wipe out 40% of its third-quarter profit.
For ordinary investors, the takeaway is straightforward: don’t just look at these companies’ net profits. Check how much comes from unrealized gains and where their average purchase price sits.
Companies that bought Bitcoin at a high cost are more vulnerable in a downturn than miners. Miners still have electricity and machines; these companies have only coins and a share price 🦖
Do you think these Bitcoin treasury companies amplify Bitcoin’s moves—or are they ticking time bombs for the next downturn?
Let’s talk in the comments.
Every day, I bring you the latest on Bitcoin and institutional capital flows. It’s not just about what’s happening in the news—I’ll help you understand the logic and opportunities behind it 👀🚀
👉 👥 邀请您加入小恐龙的粉丝群
$2.696 million in revenue turned into $509 million in net profit—a 189-fold difference
On November 6, Nasdaq-listed Bitcoin treasury company Strive filed its third-quarter report with the SEC.
Net profit was $509 million, compared with a $207 million loss in the same period last year. But $534 million of that came from unrealized gains on Bitcoin 💰
Revenue was only 0.5% of net profit. Almost all of the profit came from the mark-to-market revaluation of its holdings.
More importantly, consider the purchase price.
In the third quarter, Strive bought 8,136 bitcoins at an average price of $78,885 each.
As of September 30, the company held a total of 28,000 bitcoins, with a fair value of about $2.34 billion.
Today, Bitcoin is trading at $75,702, down 4.88% in 24 hours.
At current prices, those 28,000 bitcoins are worth only about $2.12 billion—a drop of roughly $220 million in just over a month 📉
The batch bought in the third quarter alone is already sitting on an unrealized loss of about $25.9 million.
Where did the money come from?
In the third quarter, the company raised about $783 million in total through common and preferred stock offerings.
In October, it completed another preferred stock offering, raising about $609 million net.
That comes to $1.392 billion, with the main move being to convert it into Bitcoin.
This strategy acts as an amplifier when Bitcoin prices rise, but becomes reverse leverage when prices fall ⚠️
My take
These profits say nothing about operational strength. They only show that the company holds enough Bitcoin for its financial statements to move with the price.
The two figures to really watch are the discount of its market cap to the net value of its Bitcoin holdings, and the pace of share issuance.
Once the discount widens, continuing to issue shares to buy Bitcoin dilutes existing shareholders.
If Bitcoin stays in the $75,000–$76,000 range in the fourth quarter, the company will have to book an impairment loss of about $220 million—enough to wipe out 40% of its third-quarter profit.
For ordinary investors, the takeaway is straightforward: don’t just look at these companies’ net profits. Check how much comes from unrealized gains and where their average purchase price sits.
Companies that bought Bitcoin at a high cost are more vulnerable in a downturn than miners. Miners still have electricity and machines; these companies have only coins and a share price 🦖
Do you think these Bitcoin treasury companies amplify Bitcoin’s moves—or are they ticking time bombs for the next downturn?
Let’s talk in the comments.
Every day, I bring you the latest on Bitcoin and institutional capital flows. It’s not just about what’s happening in the news—I’ll help you understand the logic and opportunities behind it 👀🚀