Strategy and Strive Add 935 BTC as Bitcoin Falls Below $80, 000
Strategy and Strive reportedly bought a combined 935 BTC for about $75.5 million, even as Bitcoin later fell below $80, 000. Strategy also spent far more buying back preferred shares than it did on its latest Bitcoin purchase.
- Strategy: 811 BTC, funded with proceeds from MSTR share sales.
- Strive: 124 BTC, mostly funded with existing cash.
- Separate transaction: Strategy repurchased $208.2 million of STRC preferred shares.
- Figures to watch: Strategy’s reported purchase cost and holdings contain small arithmetic discrepancies.
Strategy funded its Bitcoin purchase with stock sales
Strategy reportedly acquired 811 BTC between October 26 and November 1, at an average price of $80, 846 per coin. The stated purchase cost was $65.5 million. The year for that reporting period is not specified in the available figures.
Strategy raised funds by selling 1, 178, 552 MSTR common shares through its at-the-market offering program. The sales generated approximately $164 million in net proceeds. The reported allocation was $65.5 million for Bitcoin, with the remaining $98.5 million added to the company’s USD Cash balance.
Selling common shares raises capital, but it also increases the number of shares outstanding and can dilute existing holders’ ownership percentage. The effect on any individual investor depends on the size and terms of the issuance, as well as other changes to the share count.
The reported Bitcoin cost and average price do not match exactly. Multiplying 811 BTC by $80, 846 gives about $65.57 million, which rounds to $65.6 million, not $65.5 million. The gap may come from rounding or a reporting inconsistency. The available figures do not settle the matter.
Strategy’s reported holdings also differ by one Bitcoin. Its stated prior balance of 848, 517 BTC plus the 811 BTC purchase equals 849, 328 BTC, while the stated ending balance is 849, 327 BTC. Without the underlying disclosures, it is unclear which figure needs correcting.
Strategy’s STRC repurchase was a larger cash outlay
Alongside its Bitcoin purchase, Strategy reportedly repurchased 2, 092, 035 STRC preferred shares for approximately $208.2 million, using existing USD Cash. That is more than three times the reported cost of its latest Bitcoin buy.
STRC is a preferred security, a class of shares with terms that differ from common stock. It is described as variable-rate, which means its dividend rate can change. Dividing the reported repurchase cost by the number of shares gives an implied average price of about $99.52 per share, based on rounded figures. The exact repurchase prices and transaction terms are not provided, so these totals are not enough to assess the full economics.
Strategy has described buying back STRC at a discount as a way to reduce future dividend obligations. Whether a specific repurchase delivers that benefit depends on the price paid and the security’s dividend terms. A preferred-share buyback is a separate capital-allocation decision, not another Bitcoin purchase.
Strategy reported that $748.6 million remained under its digital credit securities repurchase authorization, the amount available under its stated authority to buy back certain securities. As of November 1, its designated USD Reserve was $4.79 billion, while its separate USD Cash balance was $132.7 million. The company also reportedly used $43.4 million from the reserve for preferred dividends during the reporting period.
The cash figures are hard to reconcile fully. Strategy reportedly added $98.5 million from MSTR sales to USD Cash, but the available figures do not give the opening balance or show when each transaction occurred relative to the November 1 balance. The reserve and cash balances are also separate. They are not interchangeable labels for one pot of money.
Strive’s latest purchase followed a larger acquisition
Strive reportedly bought 124 BTC for approximately $10 million, bringing its holdings to 43, 124 BTC. Its average price was described as slightly above $80, 500, but no exact figure was given.
The purchase was much smaller than Strive’s reported acquisition of 6, 182 BTC between October 17 and 23, at an average price of $82, 732 per coin. That earlier purchase raised its holdings from 36, 818 BTC to 43, 000 BTC. Strive reportedly funded most of its latest buy with existing cash.
Strive’s cash and cash equivalents reportedly fell from $504.4 million to approximately $490.4 million, a drop of about $14 million. That is more than the roughly $10 million cost of the Bitcoin purchase. The figures do not explain the difference, so the entire cash decline should not be attributed to the BTC buy.
Bitcoin’s market price was below the latest purchase prices
A reported November 2 snapshot put Bitcoin near $77, 700, below Strategy’s latest stated average purchase price of $80, 846 and Strive’s reported average of slightly more than $80, 500. The available price information does not specify a year, venue or timestamp, so treat it as a snapshot, not a precise, independently checkable benchmark.
That comparison does not establish either company’s overall profit or loss. Strategy’s reported average acquisition cost across its Bitcoin holdings was $75, 451 per coin, below the cited market price. A recent purchase can be below its cost while a company’s wider holdings remain above their average cost.
The reported combined cost of approximately $75.5 million appears to add Strategy’s stated $65.5 million purchase cost to Strive’s approximate $10 million. Using Strategy’s reported quantity and average price instead gives a cost of about $65.57 million. If Strive’s cost is rounded to $10 million, the combined figure is roughly $75.6 million. The difference is small given the approximate inputs, but $75.5 million should not be treated as an exact amount.
Key questions and answers
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How much Bitcoin did Strategy and Strive buy?
Strategy reportedly bought 811 BTC and Strive bought 124 BTC, for a combined 935 BTC. Their reported combined cost was approximately $75.5 million, though the rounded figures do not match exactly.
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How did Strategy fund its Bitcoin purchase?
It reportedly sold MSTR common shares through an at-the-market offering. The stated allocation was $65.5 million for Bitcoin and $98.5 million added to USD Cash.
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Why does Strategy’s STRC buyback matter?
It was a separate transaction funded with existing USD Cash, and its reported $208.2 million cost exceeded the Bitcoin purchase cost. The available figures do not provide enough detail to assess the buyback’s full financial effect.
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Was Bitcoin below Strategy’s overall average cost?
No. Based on the reported figures, Bitcoin near $77, 700 was above Strategy’s stated portfolio-wide average acquisition cost of $75, 451 per coin. The market quote does not specify a year, venue or timestamp.
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Do Strategy’s reported Bitcoin totals add up?
Not exactly. Its stated prior holdings plus the reported purchase total 849, 328 BTC, one more than its stated ending balance. The reported quantity and average price also imply a cost slightly above $65.5 million.
The purchases point to continued demand from two corporate Bitcoin holders, but how they funded the buys matters too. Strategy issued common shares to pay for its Bitcoin purchase while using cash for a larger preferred-share repurchase. Strive relied mostly on existing cash for a smaller addition. Reported discrepancies and missing transaction details need to be cleared up before all the figures can be considered reconciled. Strive’s daily-dividend Bitcoin treasury security is another part of the company’s broader financing strategy.
