Strategy, formerly MicroStrategy, and Strive announced new Bitcoin purchases on Monday, November 2, adding to their respective treasuries. The purchases had notably different effects on shareholders.
Strategy bought 811 BTC for $65.5 million, bringing its total holdings to 849,327 BTC. Strive added 124 BTC, taking its holdings to 43,124 BTC.
Strategy's share issuance outpaces Bitcoin purchases
Strategy sold approximately 1.18 million new MSTR shares to raise $164 million. It used $65.5 million of that amount to buy Bitcoin and kept the remainder as cash.
In effect, the company created new shares faster than it added Bitcoin. As a result, the Bitcoin represented by each diluted MSTR share fell approximately 0.17%, meaning existing shareholders now have slightly less Bitcoin exposure per share despite the company's growing holdings.
Strategy also spent $208 million buying back its STRC preferred stock, more than three times its Bitcoin spending. The move helps reduce future dividend obligations. Strategy CEO Phong Le previously described the effort as a commitment to returning STRC to health.
Strive's Bitcoin per share rises
Strive's latest filing shows its diluted share count remained unchanged while its Bitcoin holdings increased. Consequently, its Bitcoin per diluted share rose approximately 0.29%.
Strategy's Bitcoin per diluted share has already fallen 3.7% this year through October 25. The company also has authorization to sell another $18.6 billion worth of MSTR shares, potentially creating further dilution.
With MSCI index exclusion risks adding pressure, investors face another question beyond Bitcoin's price: how much of Strategy's growing Bitcoin treasury will each share actually represent?
