A company did just $2.7 million in business in a quarter, yet reported $509 million in net profit—this whale’s first reaction was that the numbers had to be wrong. The second was: this money didn’t come from selling anything.
Strive (Nasdaq: $ASST) just released a Q3 earnings report that defies common sense: revenue of $2.696 million, up 74.7% year over year, and net profit of $509 million, compared with a loss of about $207 million in the same period last year. Of that profit, $534 million came from unrealized gains on the BTC it holds. After preferred stock dividends, $474.8 million remained for common shareholders.
The pace of buying more was even more aggressive: Strive bought 8,136 BTC in Q3 at an average price of $78,885, then snapped up another 15,124 in October at an average of $83,310. It raised about $609 million through a preferred stock offering in October and promptly used the proceeds to buy crypto. As of October 30, it held 43,124 BTC, worth about $3.26 billion, with a year-to-date Bitcoin yield of 63.2%.
This whale’s take: You can’t read an earnings report like this as if it were from a normal company. Strive is essentially a shell holding BTC. When the coin price rises, the financials look great; when it turns around, those unrealized gains will disappear even faster. What really matters isn’t the $500 million figure—it’s that the company is still buying heavily above $83,000. Management has effectively made issuing preferred stock to buy crypto its core business, and its 43,124 BTC position says it all. If $BTC keeps heading lower, Strive’s next earnings report will look a lot worse than this one.
Strive (Nasdaq: $ASST) just released a Q3 earnings report that defies common sense: revenue of $2.696 million, up 74.7% year over year, and net profit of $509 million, compared with a loss of about $207 million in the same period last year. Of that profit, $534 million came from unrealized gains on the BTC it holds. After preferred stock dividends, $474.8 million remained for common shareholders.
The pace of buying more was even more aggressive: Strive bought 8,136 BTC in Q3 at an average price of $78,885, then snapped up another 15,124 in October at an average of $83,310. It raised about $609 million through a preferred stock offering in October and promptly used the proceeds to buy crypto. As of October 30, it held 43,124 BTC, worth about $3.26 billion, with a year-to-date Bitcoin yield of 63.2%.
This whale’s take: You can’t read an earnings report like this as if it were from a normal company. Strive is essentially a shell holding BTC. When the coin price rises, the financials look great; when it turns around, those unrealized gains will disappear even faster. What really matters isn’t the $500 million figure—it’s that the company is still buying heavily above $83,000. Management has effectively made issuing preferred stock to buy crypto its core business, and its 43,124 BTC position says it all. If $BTC keeps heading lower, Strive’s next earnings report will look a lot worse than this one.
