Strive’s $280 Million Bitcoin Buy Lifts BTC per Share 1.72%

Strive bought 3,311 BTC for about $280 million from Oct. 5 to 9, lifting its Bitcoin holdings to 32,773 BTC. The company’s cash and cash equivalents also increased during the period.

In an Oct. 13 filing, Strive reported an average purchase price of about $84,500 per Bitcoin, including fees and expenses. That price implies total spending of approximately $279.8 million.

Strive’s Bitcoin holdings rose from 29,462 BTC on Oct. 2 to 32,773 BTC on Oct. 9. Over the same period, effective common shares increased from 100,938,986 to 110,387,204. The company defines the measure as its combined Class A and Class B common shares.

Gross Bitcoin per effective common share rose from about 29,188 satoshis to 29,689 satoshis, an increase of 1.72%. A satoshi is one hundred-millionth of a Bitcoin. The calculation does not account for preferred-share claims, debt or other liabilities.

Class A shares increased by 9,461,103, while Class B shares declined by 12,885, resulting in a net increase of 9,448,218 common shares. The reported figures include shares sold before the reporting cutoff that were scheduled for issuance on the following business day.

Cash and cash equivalents rose by $25.6 million to $310.3 million during the comparison period. Strive also held 505,000 STRC preferred shares. Their fair value increased from $50.202 million to $50.328 million. The investment is reported separately from cash and Bitcoin.

Strive’s SATA preferred shares increased by 532,094 to 14,030,176. SATA shares rank ahead of common stock for dividends and liquidation distributions. At the disclosed annual dividend rate of 13% and a stated amount of $100 per share, the additional shares would represent about $6.9 million in annualized dividends if the share count and rate remain unchanged.

In an Oct. 13 post, Strive CEO Matt Cole reported that $208 million in warrants had been exercised and that about 15.3 million warrants remained. The company’s filing does not specify how much of the Bitcoin purchase was funded by warrant exercises, common-stock sales, preferred-stock issuance or other sources.

Strategy’s Oct. 12 update covered Oct. 5 to 11. It reported the purchase of 250 BTC for $21.5 million, bringing its holdings to 848,250 BTC. The average purchase price was $86,194, including fees and expenses.

Strategy also spent $192.4 million repurchasing 1,932,145 STRC preferred shares. It funded the Bitcoin purchase with $21 million from the sale of 125,183 MSTR common shares and $500,000 from cash. The company reported no MSTR common-share repurchases during the period and had $354.8 million of preferred-share repurchase authorization remaining.

U.S. spot Bitcoin exchange-traded funds recorded net outflows of $89.8 million on Oct. 5, inflows of $118.8 million on Oct. 6, outflows of $484.9 million on Oct. 7, outflows of $244.1 million on Oct. 8 and inflows of $21.1 million on Oct. 9. The companies’ Bitcoin purchases and the funds’ flows use different reporting periods and accounting methods.