WORLDTECHStrive Reports $509 Million Q3 Profit Driven by Bitcoin Gains
Bitcoin treasury company Strive has posted a third-quarter profit of $509 million, a result driven almost entirely by an unrealized gain on its cryptocurrency holdings, while it continues an aggressive buying campaign. The figures were reported by The Defiant.
Earnings rest on a valuation gain
For the quarter ended September 30, Strive recorded GAAP net income of $509.0 million, equal to $5.24 per share on a fully diluted basis. Income attributable to common stockholders was $474.8 million.
Nearly all of that figure stems from a $533.7 million unrealized gain on digital assets measured at fair value. Operating revenue for the period amounted to only $2.7 million, which means the result reflects the revaluation of the company's holdings rather than income from fees.
Holdings grow while shares slide
Strive's bitcoin position reached 43,124 BTC after more than 15,000 bitcoin were added since September. Its shares nonetheless kept falling despite the profitable quarter.
The company also promoted its Bitcoin Yield metric and a claim that the total return of its Class A shares had beaten bitcoin by 103.7% year to date through September 30. That metric leaves out a cost of about 30 share counts.
Dividend obligations and equity offerings
Strive's preferred share programmes imply annual dividends of about $287.4 million at November rates and October terms. Alongside its bitcoin purchases, the company has pursued strategic equity offerings.
Open questions
- How much of the reported profit would remain if the bitcoin price fell?
- Can the company meet its annual dividend obligations without issuing further shares?