Strategy (formerly MicroStrategy) and rival Strive are starting November with more Bitcoin. However, the latest purchases reveal a growing concern for MicroStrategy shareholders. Their share of the company’s Bitcoin holdings is shrinking.
Both companies announced new purchases on Monday, November 2.
- Strategy bought 811 BTC for $65.5 million, bringing its total holdings to 849,327 BTC.
- Strive added another 124 BTC, taking its holdings to 43,124 BTC.
Yet the impact on their shareholders was remarkably different.
Why MicroStrategy Shareholders Could Lose Out
Strategy sold approximately 1.18 million new MSTR shares to raise $164 million. It used just $65.5 million to buy Bitcoin and kept the remainder as cash.
To put it simply, Strategy created new shares faster than it added Bitcoin.
As a result, the Bitcoin represented by each diluted MSTR share fell approximately 0.17%.
This means existing shareholders now have slightly less Bitcoin exposure per share, despite the company’s growing holdings.
Meanwhile, Strategy spent $208 million buying back its STRC preferred stock, more than three times its Bitcoin spending.
The move helps reduce future dividend obligations. Strategy CEO Phong Le previously described the effort as a commitment to “returning STRC to health.”
Strive’s Bitcoin Purchase Tells a Different Story
Strive’s latest filing shows its diluted share count remained unchanged while its Bitcoin holdings increased.
Consequently, its Bitcoin per diluted share rose approximately 0.29%.
Strategy’s Bitcoin per diluted share has already fallen 3.7% this year through October 25. It also has authorization to sell another $18.6 billion worth of MSTR shares, potentially creating further dilution.
With MSCI index exclusion risks adding pressure, investors face another question beyond Bitcoin’s price: how much of Strategy’s growing Bitcoin treasury will each share actually represent?
The post MicroStrategy and Strive Buy More Bitcoin, but Shareholders Could Feel the Pain appeared first on BeInCrypto.