Strategy’s Q3 profit drops to $2.8 billion as bitcoin rally fades, mNAV premium hits 18-month low
Strategy reported a Q3 profit of $2.8 billion, down from the prior quarter, as bitcoin's rally slowed and its mNAV premium fell to an 18-month low.Summary
Strategy (MSTR) announced a third-quarter profit of $2.8 billion, a significant drop from the record $10 billion in Q2, attributed to the fading late-summer bitcoin rally and the compression of its valuation premium.
Despite the lower profit, the results surpassed analyst expectations for diluted earnings per share. However, the decline in bitcoin's price pushed Strategy's mNAV multiple—which compares enterprise value to bitcoin holdings—down to approximately 1.2x, the lowest level since March 2023. Strategy continued to accumulate bitcoin, adding about 43,000 BTC during the quarter, bringing its total holdings to 640,808 BTC, though this accumulation pace was the slowest of the year.
The company continues to utilize its suite of high-yield preferred stocks (like STRC) to raise capital for bitcoin purchases without issuing common shares. Strategy announced it would raise the dividend on its variable-rate STRC preferred stock to 10.5% for November, a tactic used to attract investors during price dips.
(Source：The Block)