Strive’s Ben Werkman said prolonged Bitcoin weakness could trigger restructuring, mergers, and asset sales among treasury companies.
- Strategy bought 1,587 BTC for $100 million last week, funded entirely through STRC.
- The purchase marks Strategy's second consecutive $100 million Bitcoin buy.
- Bitcoin treasury firm Strive also added 73 BTC worth roughly $4.7 million last week, continuing accumulation despite market weakness.
Strategy (MSTR) bought 1,587 Bitcoin (BTC) for $100 million last week, its second straight purchase of about that size, as the company's once-aggressive accumulation continued to slow.
Executive Chairman Michael Saylor said on Monday that Strategy had acquired the Bitcoin at an average price of $63,024, lifting its total holdings to 846,842 BTC bought for an aggregate $64.07 billion.
The purchase was disclosed in a filing with the US Securities and Exchange Commission (SEC) on Monday. Strategy, the largest corporate holder of Bitcoin, funded the latest purchase entirely through common stock, raising $209.0 million in net proceeds from 1,732,553 Class A shares sold under its at-the-market program, and issued no preferred shares, STRF, STRC, STRK, or STRD, during the week.
The reliance on common stock reflects strain on its preferred program. Strategy issues its flagship Stretch preferred (STRC) only when it trades at or above its $100 par value, and STRC has recently slipped below that level, narrowing the channel it typically uses to fund Bitcoin purchases.
Strategy's Buying Pace Slows
Just the week before, Saylor’s firm bought 1,550 BTC for $101.3 million, marking two straight weeks of roughly $100 million, down sharply from the multibillion-dollar buys it made earlier in the year.
Despite the slowdown, Strategy retains substantial capacity to keep buying. It has about $25.7 billion in remaining MSTR issuance capacity, and its USD Reserve stood at $1.1 billion
MSTR’s stock was up over 6% during the morning trade. On Stocktwits, the retail sentiment around MSTR moved to ‘neutral’ from the ‘bearish’ zone, while chatter around it shifted to ‘low’ from ‘normal’ over the past day.
Treasury Firms Brace For A Tougher Market
While Strategy's buying pace has slowed, other Bitcoin treasury companies continue to add to their holdings.
Strive, Inc. (ASST) CEO Matt Cole disclosed that the firm acquired an additional 73 BTC for approximately $4.7 million last week at an average price of $63,646 per Bitcoin.
Speaking at BTC Prague on Friday, Strive CEO Ben Werkman warned that an extended period of Bitcoin weakness could pressure treasury firms that relied heavily on convertible debt financing, potentially forcing some to restructure, merge, sell assets, or liquidate Bitcoin holdings. He pointed to Strive's acquisition of Semler Scientific as an example of the consolidation that could emerge across the sector if market conditions remain challenging.
ASST’s stock was up by 13% during morning trading hours. On Stocktwits, the retail sentiment around ASST stayed in the ‘bearish’ zone, while chatter around it stayed in the ‘low’ levels over the past day.
Read also: TeraWulf's 3-Gigawatt AI Infrastructure Ambition Wins Over Analyst Who Sees More Than 25% Upside
For updates and corrections, email newsroom[at]stocktwits[dot]com<
