Strategy and Strive together purchased 935 bitcoins as the market declined following the Binance hack. Behind these acquisitions close to $80,000 per BTC, the two companies are nevertheless following different trajectories. Strategy is now protecting its funding system, while Strive is still using its capital to quickly move up the bitcoin treasury rankings.
In brief
- Strategy and Strive together purchased 935 Bitcoins despite the market decline.
- Strategy acquired 811 BTC for $65.5 million, bringing its reserves to 849,327 BTC.
- Strive purchased 124 BTC and is closing in on Metaplanet with a total of 43,124 BTC.
- Strategy now prioritizes financial stability and the management of its commitments.
- Strive continues its accumulation strategy to advance in the ranking of companies holding Bitcoin.
The 935 BTC purchased hide two very different operations
Strategy acquired 811 BTC between October 26 and October 1er November for $65.5 million. The average price is $80,846, including fees.
The company now holds 849,327 BTCpurchased for a total of $64.08 billion, or $75,451 per unit.
Strive, for its part, added 124 BTC between October 24 and 30. The operation represents approximately $10 million, with an average price of $80,526. Its reserves now reach 43,124 BTC.
The main figures highlight the gap between the two companies:
- Strategy holds nearly 20 times more bitcoin than Strive;
- Both companies paid their last BTC around $80,000;
- Strategy is now only 673 BTC away from the 850,000 BTC threshold;
- Strive remains approximately 876 BTC short of the 44,000 BTC allocated to Metaplanet;
- Strategy now controls more than 4% of the 21 million bitcoins that may exist.
These acquisitions came as bitcoin ended October down more than 7%.
Michael Saylor had announcement the news about X with its usual formula:
We found room for even more orange.
The market price, however, fell below that paid by the two companies a few days earlier. This immediate capital loss remains limited with regard to their long-term strategy, but it serves as a reminder that their purchases do not guarantee a floor for the price of bitcoin.
Strategy devotes more money to its financial balance
Strategy’s new purchase represents only part of its financial operation. The company sold 1,178,552 shares of MSTR common stock, for net proceeds of $164 million. Of this sum, $65.5 million was used to purchase bitcoins, while $98.5 million strengthened its dollar treasury.
Strategy also spent $208.2 million to repurchase nearly 2.1 million of its STRC preferred shares. It also withdrew $43.4 million from its dollar reserve in order to pay dividends from its various preferred securities.
The company therefore devoted almost four times more capital to stock buybacks and dividends than to its last bitcoin acquisition. This choice does not mark an abandonment of its accumulation strategy. Rather, it shows that its model has entered a new phase, where liability management becomes as important as the number of BTC held.
At 1er November, Strategy had a dollar reserve of 4.79 billion and additional cash of 132.7 million. The reserve is used in particular to cover dividends from preferred shares and interest on the debt. It thus protects the company against the obligation to sell bitcoins to honor its financial commitments.
This precaution becomes essential as Strategy increases its listed products. Its bitcoin portfolio is worth about $65.9 billion, but that power is built on an architecture of common stock, preferred securities, and debt. The solidity of the model therefore depends as much on access to financial markets as on the price of crypto.
Strive is still in the race for the rankings
Strive is evolving in a more offensive phase. His assets went from 43,000 to 43,124 BTC in one weekwhile its cash flow decreased from $504.4 million to $490.4 million. The company thus retains sufficient liquidity to quickly overtake Metaplanet if it decides to continue its acquisitions at the same pace.
Its ambition is to become the second largest bitcoin treasury among listed companies, behind Strategy. This place remains disputed with Metaplanet and Twenty One, who hold approximately 44,000 and 43,514 BTC respectively.
Strive primarily finances its development through perpetual preferred stock, rather than traditional debt. This method avoids a fixed repayment deadline, but creates priority dividends that must be paid before any distribution to common shareholders.
A detail also brings the two models together. Strive holds 505,000 STRC shares issued by Strategyvalued at approximately $50.1 million. The company is therefore both a competitor in the accumulation of bitcoins and an investor in the financial system built by Michael Saylor.
Future purchases should therefore not only be evaluated in number of BTC. For Strategy, the challenge will be to preserve the stability of its immense financial structure. For Strive, it will be a question of overtaking its competitors without transforming its progression in the ranking into an excessive burden for its shareholders.
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