Bitcoin treasury firms Strategy and Strive made record purchases last week, but directed their capital toward different assets.
While Michael Saylor’s Strategy intensified its preferred-stock buybacks, Strive accelerated its Bitcoin accumulation, highlighting diverging priorities in how the companies deploy capital.
Strategy’s STRC purchases exceed $2 billion
Strategy’s Bitcoin buying streak ended after five consecutive weeks as the company stepped up efforts to support its STRC high-yield preferred stock.
The Saylor-led firm acquired no Bitcoin between Oct. 19 and Oct. 25, its first weekly pause since mid-September. It also raised no fresh capital through its at-the-market equity program, leaving its holdings unchanged at 848,517 BTC, purchased for approximately $64.02 billion.
Instead, the company spent a record $204.9 million to retire 2.07 million shares of its STRC preferred stock, extending a buyback campaign that has now spent more than $2 billion since July.
Bitcoin analyst Ragnar estimated that Strategy accounted for 28% of STRC trading volume in the latest week, showing how much the company’s own purchases have contributed to demand for the security.
The scale of the purchases is particularly notable because STRC has recovered much of the ground lost during Bitcoin’s June selloff, when the security briefly traded near $71, well below its $100 stated value.
Strategy initially sought to exploit that discount, buying back shares at prices that reduced its outstanding preferred capital and future dividend obligations. The firm publicly maintained that it would become less aggressive as the security approached $100.
However, the opposite has happened in dollar terms. Strategy executed its initial $25 million repurchase at an average price of $86.52 per share, compared with approximately $99.06 in its latest transaction. Weekly spending has continued to rise despite the shrinking discount.
The increased commitment has also drawn heavily on cash that could otherwise finance additional Bitcoin purchases. Strategy’s unrestricted USD Cash balance fell to $242.4 million from $1.6 billion over the latest reporting week, reflecting an 84.8% decline.
The company left its separate $4.83 billion reserve earmarked for preferred dividends and debt interest untouched. It also retains $956.8 million in repurchase capacity after expanding its preferred-stock buyback authorization to $3 billion.
Market observers argue that Strategy’s next move could reduce the need for further market intervention in STRC.
The company is seeking shareholder approval on Wednesday, Oct. 28, to introduce daily dividend payments for its preferred securities, replacing STRC’s existing twice-monthly schedule.
The proposed change would allow investors to receive and reinvest income more often while potentially reducing price fluctuations tied to dividend payment dates. Strategy hopes the arrangement will help keep STRC trading near $100 without increasing its current 12% annual dividend rate.
Ragnar suggested the firm’s management may want to assess whether daily dividends attract enough investor interest before considering another increase in the payout rate.
If shareholders approve the proposal, the first daily STRC dividend payment is scheduled for Nov. 2, giving Strategy an opportunity to test whether a change in payment frequency can sustain demand as its remaining repurchase authorization declines.
Strive’s record Bitcoin purchase puts Metaplanet’s second-place ranking within reach
Strive is taking the opposite approach to preferred-stock financing, raising fresh capital through high-yield securities as it accelerates its Bitcoin accumulation campaign.
The company acquired a record 6,182 BTC for approximately $511.4 million between Oct. 17 and Oct. 23, lifting its holdings to 43,000 BTC and bringing it closer to overtaking Japan’s Metaplanet as the world’s second-largest publicly traded corporate Bitcoin holder.
The purchase leaves Strive just 1,000 BTC behind Metaplanet’s 44,000 BTC and 514 coins short of Tether-backed Twenty One Capital, which holds 43,514 BTC.
The narrowing gap brings Chief Executive Matt Cole closer to his ambition of becoming the second-largest corporate Bitcoin holder before the end of 2026.
Strive has financed its rapid expansion through a series of capital raises, most recently completing a $630 million offering of its 15% Series A Perpetual SATS Preferred Stock on Oct. 20.
Strive sold seven million shares at $90 apiece, providing fresh capital while committing to annual cumulative dividends of $15 per share. The initial issuance carries approximately $105 million in annualized dividend obligations, with the company setting aside a reserve equivalent to 18 months of payments.
The fundraising campaign is continuing. Strive disclosed a new $1 billion at-the-market program on Monday, allowing it to sell additional SATS shares over time to finance Bitcoin acquisitions, other investments, and general corporate expenses.
Its balance sheet also showed considerable liquidity despite the latest acquisition. Cash and cash equivalents increased to $504.4 million as of Oct. 23 from $317.5 million a week earlier.
Strive also retained 505,000 shares of Strategy’s STRC preferred stock, valued at approximately $50.2 million. The position was unchanged during the same week Strategy spent a record amount buying back that security.
However, the preferred-stock financing introduces recurring costs that could grow alongside Strive’s Bitcoin holdings. Its prospectus says future cash dividends on SATS are expected to be funded primarily through additional capital raising, making continued investor demand important to sustaining the strategy.
The new offering gives Strive additional fundraising capacity as it approaches Metaplanet’s holdings, although the authorization does not guarantee that the entire $1 billion will be raised. The timing and size of future sales will depend on market conditions and demand for SATS shares.