Key Takeaways
- Strive acquired 1,375 BTC for $109 million, increasing total reserves to 24,531 BTC valued at approximately $1.96 billion.
- The company’s SATA preferred stock is nearing $1 billion in market capitalization while maintaining its $100 par value.
- SATA’s 13% annual dividend yield contributed to it representing 70% of last week’s capital inflow.
- ASST shares have surged over 100% in the past month with a 56% year-to-date gain, despite trading 90% below all-time highs.
- Meanwhile, Strategy’s STRC preferred shares remain underwater at approximately $98, with MSTR posting a 12% decline this year.
Strive continues its aggressive Bitcoin accumulation strategy. The Bitcoin treasury company added 1,375 BTC to its reserves last week, paying an average of $79,281 per coin for a total expenditure of $109 million.
This acquisition elevates Strive’s Bitcoin reserves to 24,531 BTC, currently valued at approximately $1.96 billion. The company simultaneously increased its cash reserves to $202,600.
ASST shares have experienced remarkable growth, more than doubling within the last month and posting a 56% gain year-to-date. The stock recently touched a yearly peak above $27. Following the announcement, shares declined roughly 2% to 3%, slipping below $27 as Bitcoin retreated from levels above $82,000.
While the recent performance has been impressive, ASST shares remain approximately 90% below the peak they achieved about a year ago.
The recent acquisition follows a 1,800 BTC purchase from two weeks prior, which elevated Strive to the fifth position among Bitcoin treasury companies. The firm now ranks behind Strategy, Twenty One Capital, Metaplanet, and MARA Holdings.
CEO Matt Cole has publicly stated his objective to accumulate more than 20,000 BTC before the year concludes, with long-term aspirations to secure the second-largest Bitcoin treasury position, trailing only Strategy.
SATA Powers Funding Strategy
Cole disclosed that SATA, Strive’s perpetual preferred stock, contributed 70% of the capital raised during the previous week. Common stock sales accounted for the remaining 30%.
SATA has reached $999 million in outstanding notional value, approaching the significant $1 billion threshold. The instrument provides daily dividends at a 13% annualized rate and consistently trades at or near its $100 par value.
This par value stability proves crucial for operations. It enables Strive to execute at-the-market offerings without facing the dilutive pressure that emerges when preferred securities trade below par.
Strategy’s STRC Faces Headwinds
In contrast, Strategy encounters challenges with its preferred stock instrument. STRC, which provides a 12% yield, currently trades around $98 and has failed to recover to its $100 par value since mid-May.
During the previous week, Strategy repurchased $176 million worth of STRC and expanded its authorized buyback program from $1 billion to $2 billion. These repurchases were funded through cash reserves rather than new equity issuance, reducing the company’s USD cash position to $1.438 billion.
Strategy maintained its Bitcoin holdings unchanged at 845,050 BTC.
MSTR shares have declined 12% year-to-date, while ASST has significantly outperformed during the same timeframe. The divergence between SATA trading at par and STRC’s ongoing discount to par has emerged as a critical advantage in Strive’s ability to raise capital more effectively.
STRC has remained below $100 since mid-May.
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