MicroStrategy and Strive Make Major Bitcoin Purchases

MicroStrategy (MSTR) made a significant Bitcoin (BTC) purchase last week, acquiring 334 BTC for $28.7 million between October 1 and October 4. The average price per coin was $85,839. To fund the purchase, the company sold 92,894 MSTR shares, raising $15.7 million, and used an additional $13 million in cash. This brings MicroStrategy's total Bitcoin holdings to 848,000 BTC, purchased for $63.97 billion at an average cost of $75,441 per coin.

In a parallel move, Strive Asset Management (ASST) outpaced MicroStrategy by buying 2,000 BTC between September 28 and October 2. The purchase, totaling $169 million at an average price of $84,422 per coin, increased Strive's holdings to 29,462 BTC. CEO Matt Cole noted that 61.5% of the funds came from SATA, Strive’s own preferred stock.

MicroStrategy also repurchased 1.77 million STRC preferred shares for $176.3 million between September 28 and October 4. The company used $154.1 million in cash and $22.2 million in interest income for this transaction. As of the end of the period, MicroStrategy had a $4.88 billion reserve and $833.4 million in additional cash.

The company provided third-quarter estimates, including a digital-asset gain of $20.91 billion and a carrying value of holdings at $70.82 billion. Additionally, MicroStrategy’s 30-day historical volatility stood at 94%, significantly higher than Bitcoin’s 39% and Meta’s 47%. STRC, however, showed low volatility at 9%, attributed to its 12% annual dividend.

Michael Saylor, MicroStrategy’s executive chairman, emphasized the milestones in Digital Credit, noting that the company is leveraging Bitcoin’s power while reducing price swings for income investors. As of last week’s close, MSTR stock was at $160.01, with Monday’s premarket trading near $162.91, up about 2%. The stock remains below the key 200-day EMA trend-reversal line at $152.89, with resistance at $170 and support at $156 and $148.