Strategy (MSTR) acquired 811 Bitcoin for approximately $65.5 million between October 26 and November 1, bringing its total holdings to 849,327 BTC. The purchase was funded by the sale of about 1.18 million shares of MSTR common stock for roughly $164 million, with the remaining proceeds held in USD cash. Strategy also executed a $208 million buyback of its STRC preferred stock, marking a shift from relying solely on new preferred issuance to fund acquisitions. This move follows third-quarter results showing $19.5 billion in net income, driven largely by unrealized gains from Bitcoin's price appreciation.
Concurrently, Strive (ASST), led by Matt Cole, added 124 BTC at an average price of $80,526 per coin during the week of October 24–30. This increased Strive’s total holdings to 43,124 BTC, solidifying its position as the second-largest public corporate holder of Bitcoin. Strive’s cash reserves decreased by approximately $14 million to $490 million during this period, while the firm continues to hold 505,000 shares of Strategy’s STRC preferred stock. Both companies’ purchases occurred amid broader market volatility, including a significant security breach at Binance estimated at $6.3 billion, which contributed to Bitcoin sliding toward $76,000 before recovering near $78,000.
Strategy’s decision to utilize common stock sales rather than new preferred equity issuance signals a strategic pivot in capital allocation. By buying back STRC preferred shares while simultaneously purchasing Bitcoin, the company is actively managing its balance sheet structure to potentially reduce dilution costs or optimize yield obligations. This approach contrasts with previous quarters where preferred stock sales were the primary funding mechanism, suggesting that management may be responding to changing market conditions or investor sentiment regarding the sustainability of perpetual preferred instruments.
The simultaneous accumulation by Strategy and Strive highlights a divergent trend between corporate treasury adoption and broader crypto market stability. While these firms continue to stack assets despite negative news cycles, such as the massive Binance hack, their stock prices reacted sharply to the volatility, with MSTR dropping 9% and ASST falling 20%. This disconnect indicates that investors are pricing in operational risks and potential leverage concerns more aggressively than the underlying asset accumulation strategy suggests, creating a gap between corporate conviction and shareholder confidence.
