Strategy acquired an additional 811 bitcoin last week. The firm led by Saylor allocated approximately $65.5 million, acquiring coins at an average price of $80,846 each, during the period from October 26 to November 1, as detailed in its 8-K filing on Monday. Total holdings now stand at 849,327 BTC, acquired for approximately $64.1 billion at an average price of $75,451. The funds did not originate from newly issued preferred stock on this occasion. Strategy divested approximately 1.18 million shares of MSTR common stock for an estimated $164 million, allocated $65.5 million into bitcoin, and retained the remaining $98.5 million in USD cash. It also allocated approximately $208 million to repurchase around 2.1 million shares of its STRC preferred. Throughout the year, the strategy has predominantly relied on preferred issuance to finance acquisitions. Currently, the company is utilising the buyback mechanism to streamline its preferred stack while simultaneously increasing its coin holdings.
Saylor hinted at the acquisition on Sunday, accompanied by his customary tracker chart and a phrase that circulated widely on X: “We found room for even more orange.” The acquisition occurred shortly after Strategy disclosed its third-quarter results on Thursday. Net income reached $19.5 billion, a significant increase from $2.79 billion in the previous year, propelled by a $20.9 billion operating gain associated with the rise in bitcoin prices during the quarter. That gain is a paper one under fair-value accounting, not cash. Saylor described this as the beginning of the next bitcoin bull market, highlighting that bitcoin is currently trading approximately 21% above its 200-week moving average. The same release indicated that CFO Andrew Kang will step down on November 5, with COO Reza Virasteh set to assume the role in January. Strategy shareholders also recently approved a proposal allowing four preferred stocks to accrue dividends daily, including weekends and holidays, with 99.3% of votes cast in favour.
The modification aimed to enhance liquidity, minimise reinvestment delays, and bolster price stability, all while maintaining dividend rates and total obligations at their current levels. The new payment schedule is contingent upon board approval and regulatory filings, with implementation anticipated to commence in November 2026 for STRC and January 2027 for the other preferred stocks. Strive remains competitive for the second position among public holders. The firm led by Matt Cole acquired 124 BTC from October 24 to 30 at approximately $80,526 each, increasing its total holdings to 43,124 BTC. That represents a reduction in purchases compared to the prior week, during which over 6,000 coins were acquired; however, Cole has maintained a steady strategy in his dealings. He has stated that the company is acquiring “hand over fist” when prices decline, and he has structured the funding model around perpetual preferred equity to circumvent forced selling. Strive’s cash position decreased by approximately $14 million, bringing it to $490 million during the same period, while it continues to retain 505,000 shares of Strategy’s STRC. Meanwhile, the most significant development in the cryptocurrency sector last week was not a purchase.
On October 29, Binance experienced a security breach that it now estimates to be valued at $6.3 billion, originating from a compromised DevOps laptop. Blockchain analytics firms such as Chainalysis and TRM Labs have associated the attack with North Korea’s TraderTraitor group, noting that the drain allegedly occurred in approximately 20 minutes. Binance has announced that it has frozen approximately $3 billion of the misappropriated funds and will utilise its SAFU fund along with company reserves to compensate for the losses. Bitcoin slid toward $76,000 on the news, experiencing a decline of approximately 3.6% over the week. Strategy’s stock experienced a decline of approximately 9% last week, concluding Friday at $130.51. The company retains approximately $18.6 billion of MSTR accessible under its ATM program, indicating that further acquisitions are probable, contingent upon favourable market conditions. Strive shares experienced a decline of approximately 20% last week.At the time of writing, bitcoin is near $78,000.
