Strive bought 6,182 BTC in one week for $511 million, and CT is full of “a new whale has arrived” and “taking over from Saylor.”
I see it differently.
At an average price of $82,732 including fees, BTC has been hovering around $80,000 these past two days and has only just reclaimed $81,000. They’re already sitting on an unrealized loss right after buying. That’s not buying the dip; it’s chasing the price. Reports say this is the fourth consecutive week they’ve ramped up purchases. With Bitcoin grinding around $80,000, they’re buying more and more—but where’s the money coming from? A $1 billion preferred stock/equity offering program. Put simply, the company is buying the coins, while the people buying its preferred stock and shares are footing the bill. Dividends on preferred stock are a fixed cost—they have to be paid whether the price of Bitcoin goes up or not.
Even more ironic: in that same week, Strategy—the OG of this model—didn’t buy a single coin, and instead spent $204.9 million buying back its own STRC preferred stock. The company that’s been running this playbook the longest is starting to prioritize its liabilities, while the newcomer is flooring the accelerator.
A company stockpiling coins is neither bullish nor bearish; it’s just a balance sheet. Don’t mistake someone else’s fundraising pace for a signal that the bottom is in. What really determines how long these companies can keep buying is whether the secondary market is still willing to buy their new shares.
#BTC #Strive
I see it differently.
At an average price of $82,732 including fees, BTC has been hovering around $80,000 these past two days and has only just reclaimed $81,000. They’re already sitting on an unrealized loss right after buying. That’s not buying the dip; it’s chasing the price. Reports say this is the fourth consecutive week they’ve ramped up purchases. With Bitcoin grinding around $80,000, they’re buying more and more—but where’s the money coming from? A $1 billion preferred stock/equity offering program. Put simply, the company is buying the coins, while the people buying its preferred stock and shares are footing the bill. Dividends on preferred stock are a fixed cost—they have to be paid whether the price of Bitcoin goes up or not.
Even more ironic: in that same week, Strategy—the OG of this model—didn’t buy a single coin, and instead spent $204.9 million buying back its own STRC preferred stock. The company that’s been running this playbook the longest is starting to prioritize its liabilities, while the newcomer is flooring the accelerator.
A company stockpiling coins is neither bullish nor bearish; it’s just a balance sheet. Don’t mistake someone else’s fundraising pace for a signal that the bottom is in. What really determines how long these companies can keep buying is whether the secondary market is still willing to buy their new shares.
#BTC #Strive
