Bitcoin treasury firms Strategy and Strive made record expenditures last week, deploying capital toward distinct financial instruments amid shifting market dynamics.
While Strategy intensified its high-yield preferred stock buybacks, Strive accelerated its Bitcoin accumulation, underscoring contrasting capital allocation strategies between the two firms.
Strategy’s STRC Buybacks Exceed $2 Billion
Strategy’s Bitcoin acquisition pace paused for the first time since mid-September as the company redirected resources to support its STRC high-yield preferred stock. Between Oct. 19 and Oct. 25, Strategy acquired no Bitcoin and raised no fresh equity capital, maintaining its Bitcoin holdings steady at 848,517 BTC valued at ~$64.02 billion.
Instead, the company executed a record $204.9 million buyback, retiring 2.07 million STRC shares and expanding its total buyback expenditure to over $2 billion since July.
Bitcoin analyst Ragnar estimated Strategy accounted for 28% of STRC trading volume last week, reflecting its significant market impact.
The buyback scale contrasts with STRC’s recovery from its June price dip, when the security briefly traded near $71 below its $100 par value. Strategy initially targeted this discount to reduce future dividend obligations, initially purchasing at an average of $86.52 per share compared to $99.06 in its latest transaction, indicating evolving pricing dynamics as the discount narrows.
Strategy’s cash reserves plummeted 84.8% to $242.4 million over the reporting period, down from $1.6 billion, though its $4.83 billion dividend reserve and $956.8 million repurchase capacity remain intact.
Market observers anticipate Strategy’s next moves could stabilize STRC pricing without further intervention. The firm is seeking shareholder approval to transition STRC dividends from bi-monthly to daily, potentially reducing volatility and maintaining price near $100 without increasing the current 12% annual yield.
Strive’s Record Bitcoin Acquisition Narrows Gap with Metaplanet
Strive diverged from Strategy’s approach, investing $511.4 million in 6,182 BTC between Oct. 17 and Oct. 23 to expand its holdings to 43,000 BTC, positioning it within striking distance of Metaplanet’s 44,000 BTC and Tether-backed Twenty One Capital’s 43,514 BTC.
Capital raised through its recent $630 million Series A Preferred Stock offering at $90/share, with $105 million annualized dividends, enabled the acquisition. The company’s cash reserves rose to $504.4 million despite the spend, supported by a new $1 billion Series A perpetual preferred stock program.
Strive retains 505,000 STRC shares valued at $50.2 million, unchanged during Strategy’s record buyback week. However, its preference for recurring dividend obligations via perpetual preferred stock introduces financing risks dependent on continued investor demand.
With CEO Matt Cole aiming to overtake Metaplanet by late 2026, Strive’s strategy hinges on leveraging its expanding capital-raising capacity to sustain Bitcoin growth aligned with broader investment goals.
