Corporate Bitcoin Buying Spree
Strategy and Strive Purchase $182.7 Million in Bitcoin Amid Market Rally
Anonymous
Key Points
1
Strategy funded both the Bitcoin purchase and STRC repurchase from existing cash rather than issuing new shares through its at-the-market programs; no sales occurred through its MSTR, STRF, STRC, STRK or STRD offerings during the week.
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After the transactions, Strategy had $876 million remaining under its digital credit securities repurchase program and a separate authorization to repurchase up to $1 billion of MSTR common stock.
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Strategy’s USD reserve stood at approximately $5.04 billion at the end of the reporting period, while its USD cash balance was about $1.05 billion.
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Strategy’s 846,000-Bitcoin portfolio had an aggregate acquisition cost of $63.81 billion, or an average of $74,417 per Bitcoin; at prevailing prices, the holdings represented roughly $8.1 billion in unrealized gains.
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Strive has continued purchasing Bitcoin weekly and has become the fifth-largest corporate Bitcoin holder, with 26,355 BTC worth about $2.2 billion at the prices reported.
Strategy and Strive spent $182.7 million on Bitcoin this week as the price surged past $86,000. KuCoin reported that Strategy bought 950 BTC for $75.7 million while Strive purchased 1,355 BTC for $107.7 million. Strategy now holds 846,000 Bitcoin — more than 4% of all Bitcoin that will ever exist — worth roughly $72 billion.
The buying spree marked Strategy's return after a three-week pause. ADVFN noted that Bitcoin's 6% weekly jump helped lift Strategy shares about 8% to 9%. But analysts warned investors: the stock rides a dangerous wave tied entirely to crypto prices, and today's gains could vanish just as fast.
Strategy Spends More on Share Buybacks Than Bitcoin
Strategy didn't just buy Bitcoin. KuCoin reported the company spent $174 million repurchasing its own preferred shares while also paying $57.4 million in dividends and debt interest. That means the company directed more cash toward buying back stock than toward accumulating the world's most valuable cryptocurrency.
Both purchases came from existing cash reserves, not new stock sales. Strategy had $876 million left under its digital credit buyback program and a separate $1 billion authorization for common stock repurchases. The company's cash position stood at $5.04 billion in USD reserves plus $1.05 billion in actual cash.
Strategy's Bitcoin Portfolio Sits on Massive Unrealized Gains
Strategy's 846,000 Bitcoin cost the company $63.81 billion to accumulate, an average of $74,417 per coin. At current prices near $86,000, those holdings have swollen to roughly $72 billion — representing $8.1 billion in paper gains that vanish if prices fall.
Strive Becomes Fifth-Largest Corporate Bitcoin Owner
ADVFN reported that Strive has joined the Bitcoin-buying race with 26,355 coins now in its corporate treasury. The purchase of 1,355 Bitcoin at an average price of about $79,475 marks Strive's fifth-largest position among companies holding the cryptocurrency. Those coins are worth roughly $2.2 billion at today's prices.
Bitcoin Surge Lifts But Volatility Looms
Bitcoin's jump to $86,000 this week — its highest level ever — helped Strategy shares climb 8% to 9%. But the company has no safety net. Every dollar Strategy's stock gains depends entirely on Bitcoin staying strong. If prices crash like they have before, gains disappear instantly and shareholders face the opposite move.
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