The CSOP Two Times Short MSTR ETF (07399) surged more than 20% in late trading. As of press time, it was up 20.68% at HK$13.19, with turnover of HK$11.5032 million.
On the news front, Strategy reported third-quarter net profit that soared to US$19.53 billion, yet its BTC Yield since the start of the year unexpectedly fell to a negative -3.7%, meaning that even though the company's total Bitcoin holdings increased, the amount of Bitcoin represented by each share actually declined compared with the beginning of the year.
Data compiled by Woofun AI shows that the company's core cash-generating capacity remains highly dependent on asset price fluctuations rather than operating cash flow.
A more critical risk is that a large net profit does not equate to cash inflow. The company still needs to use real money to pay preferred stock dividends and debt interest, while unrealized gains from rising Bitcoin prices cannot be directly converted into dollars in its account, resulting in a significant disconnect between paper wealth and actual liquidity.