TL;DR
- Michael Saylor stated that Strategy has no immediate M&A plans, citing the uncertainty of such processes.
- The firm reported a $2.8 billion net income in Q3, beating expectations and lifting its shares nearly 6%.
- Strategy added 42,706 BTC in Q3 (totaling 640,808 BTC) and maintains a $150,000 target for Bitcoin.
Michael Saylor, chairman of Strategy, has curbed speculation about an imminent wave of consolidation in the Bitcoin treasury sector. During the firm’s third-quarter earnings call on Thursday, Saylor stated that the company has no immediate plans to acquire other Bitcoin treasury firms.
He explained that while mergers and acquisitions (M&A) might look attractive on paper, they often involve “long and uncertain processes” that can easily derail their strategic value over time.
Saylor’s comments come as analysts suggest acquisitions might become necessary for survival in the sector, as evidenced by the recently announced merger between Strive and Semler Scientific.
However, Strategy maintains a dominant lead, having added 42,706 BTC in the third quarter alone, bringing its total to 640,808 BTC. CEO Phong Le reinforced this caution, noting that mergers are “notoriously complex” and can hide unforeseen risks. Saylor argued that the firm’s existing model, focused on transparent and high-speed digital transactions, offers a predictable advantage for investors.
Solid Q3 Earnings Boost Shares
The company’s stance is backed by strong financial results. MicroStrategy reported a net income of $2.8 billion in the third quarter, surpassing Wall Street expectations and causing its shares (MSTR) to rise nearly 6% in after-hours trading.
Although lower than the previous quarter, this profit sharply reverses the $340.2 million loss reported during the same period last year. Despite a recent “B-” rating from S&P Global, the firm maintains a bullish outlook.
Strategy is targeting a 30% Bitcoin yield by year-end, up from the current 26%, based on its internal estimate that Bitcoin could reach $150,000 in the coming months.
Although Saylor did not completely close the door on future deals, he emphasized that the company’s plan is focused on strengthening its balance sheet, selling digital credit, and continuing its primary Bitcoin accumulation strategy to act in the best interest of its investors.
