Bitcoin: Strategy pauses BTC purchases as Strive adds 6,182

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Strategy, the company founded by Michael Saylor, did not purchase any bitcoin last week, according to a regulatory filing. His number of bitcoins held therefore remains at 848,517 BTC. The company, however, dedicated $204.9 million to repurchase its STRC preferred shares.

These preferred shares are designed to trade around $100. When they quote above this threshold, Strategy can issue new ones to raise funds and buy bitcoin. When they are close to or below $100, the company buys them back to support the price, reduce future dividend obligations (currently around 12%) and preserve confidence in this “digital credit” product. Currently, the issuance channel has been closed for a while and these buybacks aim to bring the title back close to $100 in order to reopen this bitcoin purchase funding channel.

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The previous week, it had already repurchased $193 million worth of these securities, while acquiring 267 BTC through the issuance of new MSTR shares, which dilutes investors in MicroStrategy (MSTR) stock. This choice is not new, at the beginning of September, Strategy already favored the repurchase of its STRCs rather than the purchase of bitcoins.

Strive, for its part, purchased 6,182 BTC for $511.4 million. The company now holds 43,000 BTC, up from 24,531 at the start of September. These purchases are largely financed by the issue of its own preferred shares (in particular SATA), which play a driving role comparable to that which STRC played for Strategy. These securities allow Strive to raise capital from investors looking for yield, and convert it into bitcoin, thus boosting its accumulation.

By the beginning of October, Strategy, Metaplanet and Strive had together reached a record of more than 921,000 bitcoins held.

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Passionate about technology, I write articles about digital technology and cryptocurrencies for several online newspapers.

If you have Capital B's purchase figures from time to time too, that would be cool :)

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