Strategy made nearly $2 billion on Bitcoin this year but SEC filing hides a far bigger number
CryptoSlate
While Strategy reports Bitcoin gains, regulatory filings reveal multi-billion dollar unrealized losses and a reliance on continuous equity financing to fund operations.Summary
Strategy claims nearly $2 billion in gains from its Bitcoin purchasing strategy, utilizing proprietary metrics like 'BTC Yield.' However, SEC filings paint a different picture, showing over $14 billion in quarterly unrealized losses and a total Bitcoin stack currently valued below the company's aggregate cost basis. Despite these paper losses, the firm continues aggressive acquisitions by issuing high-yield preferred stock. The company's own disclosures warn that its software business cannot cover financial obligations, making it heavily dependent on perpetual capital raises to maintain its operations.
(Source：CryptoSlate)