Strive's 20,000 BTC Milestone Masks Shareholder Dilution

Strive, a Bitcoin treasury company, reached 20,000 BTC in its holdings last week. However, despite this milestone, investors actually saw their share of the asset decrease due to rapid dilution.

The company bought 79 BTC from July 20 through July 24 at an average price of around $65,723 per coin, including fees and expenses. This purchase increased Strive's holdings from 19,921 BTC to 20,000 BTC.

But while the total amount of Bitcoin held by Strive grew, the number of effective common shares outstanding also rose significantly - by 430,000 between July 17 and July 24. As a result, the amount of Bitcoin per share actually decreased, falling from around 23,809 satoshis to 23,781 satoshis.

This decline may seem small at 0.12%, but it highlights the issue of dilution in the context of Bitcoin treasuries. Strive's reported cash movement does not explain how the acquisition was financed, leaving questions about the company's funding and decision-making processes.