Strategy's BTC Yield Falls Sharply Amid Capital Strategy Scrutiny

Strategy's BTC Yield, a measure of bitcoin accumulation per share, fell to -3.7% for the year through October 25, reversing from a positive 4.5% in late July. The company raised only $58.7 million in the first three weeks of October, a sharp decline from the $5.41 billion raised during the third quarter. The quarterly report showed record third-quarter operating income of $20.91 billion, which was driven almost entirely by gains on the company’s bitcoin holdings.

The deterioration in Strategy's funding machine reflects a significant slowdown in capital raising compared to previous quarters. Furthermore, the company deployed $2.04 billion this year toward repurchasing its 12% preferred stock, a strategy CEO Phong Le stated demonstrated commitment to returning the stock to health.