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Bitcoin Weakness May Force Treasury Firm Consolidations

Strategy spends another $100 million on Bitcoin, while rival warns of industry consolidation risk.

  • Strategy (MSTR) purchased 1,587 Bitcoin for $100 million last week, marking its second consecutive nine-figure buy.
  • Funding for this purchase relied entirely on common stock as its flagship Stretch preferred (STRC) traded below its issuance threshold.
  • Other treasury firms like Strive (ASST) continue accumulating BTC, but industry leaders warn prolonged market weakness could trigger consolidation.

In a filing disclosed Monday, Bitcoin giant Strategy reported its latest purchase of 1,587 BTC for $100 million. Consequently, this marks the company’s second straight week of roughly $100 million buys, a significant slowdown from its earlier multibillion-dollar accumulation pace.

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Strategy funded the purchase entirely through common stock. However, this shift reflects strain on its preferred program, which requires STRC to trade at or above its $100 par value.

Executive Chairman Michael Saylor confirmed the acquisition price averaged $63,024 per Bitcoin. Meanwhile, the company’s total holdings now stand at 846,842 BTC.

Other treasury firms persist with their strategies despite market conditions. Strive CEO Matt Cole disclosed his firm added 73 BTC worth $4.7 million last week.

Speaking at BTC Prague, Strive CEO Ben Werkman offered a sobering outlook. He warned that extended Bitcoin weakness could force some treasury firms to restructure, merge, or sell assets.

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“An extended period of Bitcoin weakness could pressure treasury firms,” Werkman stated. He cited Strive‘s acquisition of Semler Scientific as an example of potential sector consolidation.

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