Yesterday, MicroStrategy and Coinbase released their third-quarter financial reports, and from their financial data, the apparent earnings were not very good. Therefore, after the financial reports were released, their stock prices fell.
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Moreover, the three major U.S. stock indices experienced a slight pullback yesterday, which also affected the crypto market.
Bitcoin is currently fluctuating around $72,000, while Ethereum is oscillating at $2,650. Altcoins are also following the market's pullback, generally down about 5%.
Although MicroStrategy and Coinbase's financial reports are not very good, the impact on the crypto market is not significant.
From on-chain data, the current market turnover is mainly from short-term profit-taking investors, and there are no signs of large-scale exits from early investors.
This indicates that some short-term holders feel that Bitcoin prices have risen too high, leading to a fear of heights sentiment, resulting in profit-taking exits.
Bitcoin is consolidating around $72,000 before pushing higher, which is actually beneficial for challenging the $80,000-$90,000 highs.
It is worth noting that yesterday MicroStrategy announced plans to raise $42 billion over the next three years to purchase more Bitcoin.
Undoubtedly, this is a long-term positive for the crypto industry, which will benefit the rise in Bitcoin prices later.
According to the financial report they released yesterday, as of the end of the third quarter this year, MicroStrategy has held 252,220 Bitcoins, with a return of 17.8% for Bitcoin this year.
Yesterday, MicroStrategy also announced a major plan: under the leadership of Michael Saylor, they will raise $21 billion over the next three years through stock sales and bond issuance.
In this way, they can use this money to buy more Bitcoin as a reserve asset for the company, hoping to earn more.
In this quarter, MicroStrategy purchased another 25,889 Bitcoins, spending an average of $60,839 each.
It can be seen that MicroStrategy has very ample funds, and their strategy is simple and clear: to buy Bitcoin by issuing bonds.
If funds are insufficient, they issue bonds, which means they have a continuous source of funds to purchase Bitcoin.
Now, they hold a total of 252,220 Bitcoins, worth about $18 billion.
They are currently the largest corporate Bitcoin holders, indicating that their strategy of buying Bitcoin is being gradually implemented.
MicroStrategy has $4.3 billion in convertible debt and $1.1 billion in new equity.
Furthermore, they are doing well in balancing capital and increasing Bitcoin holdings, currently holding $836 million in cash.
Every quarter, they increase their Bitcoin holdings, with an average acquisition price of $39,266 each.
They also repaid $500 million in secured notes, reducing the burden of Bitcoin holdings, with fixed interest expenses decreasing by 40%.
In terms of stock performance, MicroStrategy has outperformed almost all major U.S. stocks, even surpassing the benchmark company in the AI industry, Nvidia. MicroStrategy's stock price has increased by over 1,700%.
The reason their stock price has performed so well is mainly due to their long-term purchase of Bitcoin, resisting inflation.
This also tells us that if we want our assets to beat inflation, we must allocate Bitcoin.
Currently, MicroStrategy has held over 220,000 Bitcoins, second only to BlackRock. At this rate, the two will become the two giants in the Bitcoin market.
Based on the current trend, as BlackRock and MicroStrategy continue to increase their Bitcoin holdings, this will be beneficial for the long-term rise of Bitcoin prices; we can look forward to whether Bitcoin's price can break $100,000 this year.
