Image Credit: strive.com
Key Takeaways
- Strive’s SATA preferred stock, paying a 13% annualized dividend, is nearing a $1 billion market cap and drove 70% of the company’s capital raised last week.
- Strive added 1,375 BTC for $109 million, bringing its total holdings to 24,531 BTC worth roughly $1.96 billion.
- Strategy made no new Bitcoin purchases and instead spent $176 million buying back its own STRC preferred stock, which trades below its $100 par value.
Strive’s high-yielding preferred stock, SATA, is approaching a $1 billion market capitalization as the Bitcoin treasury company continues to expand its Bitcoin holdings and outperform larger rival Strategy.
Strive added 1,375 BTC last week for $109 million, an average price of $79,281 per Bitcoin, bringing its total holdings to 24,531 BTC worth approximately $1.96 billion. Strategy, by contrast, bought no new Bitcoin last week and instead used cash on hand to repurchase shares of its own preferred stock, STRC.
SATA’s Structure And Yield Are Driving Strive’s Capital Raising
Strive CEO Matt Cole said SATA accounted for 70% of the capital the company raised last week, with the remaining 30% coming from common stock sales. SATA is a perpetual preferred stock, meaning it has no maturity date and pays a fixed dividend indefinitely rather than returning principal at a set time.
The stock pays daily dividends at a 13% annualized rate and has continued trading close to its $100 par value. That stability around par matters because it allows Strive to keep raising fresh capital through at-the-market offerings, a mechanism that lets a company sell new shares gradually into existing market demand rather than through a single large offering.
A preferred stock trading near or above par signals investors are willing to buy more of it at close to face value, which keeps that funding channel open.
Strive’s common stock, trading under the ticker ASST, has more than doubled over the past month and is up 56% year-to-date. Those gains still leave the stock about 90% below the record high it reached roughly a year ago, illustrating how volatile the shares have been even during the recent rally.
Strategy Holds Bitcoin Steady While Buying Back Its Own Preferred Stock
Strategy made no changes to its Bitcoin holdings last week, leaving its total at 845,050 BTC. Instead, the company spent $176 million repurchasing shares of STRC, its own high-yielding preferred stock, which carries a 12% annualized dividend.
Strategy also doubled its authorized STRC repurchase program, from $1 billion to $2 billion, giving it more room to continue buying back the stock going forward.
Strategy funded the repurchases using existing cash rather than issuing new common stock, a choice that avoids diluting existing shareholders but reduces the company’s available cash. That spending brought Strategy’s U.S. dollar cash balance down to $1.438 billion.
STRC has continued to underperform SATA and has not returned to its $100 par value since mid-May. The stock currently trades at approximately $98, a level that reflects investors demanding a discount relative to face value rather than treating the shares as equivalent to newly issued stock at par.
Diverging Stock Performance Reflects The Contrast
Strive’s common stock has recently outperformed Strategy’s, which remains down 12% for the year.
The difference in approach between the two companies is notable: Strive has continued funding new Bitcoin purchases partly through its preferred stock, while Strategy has directed cash toward defending its own preferred stock’s price rather than adding to its Bitcoin position last week.
Both approaches reflect different strategies for managing investor demand around perpetual preferred stock trading below or near par.
SATA’s steadier position near $100 has let Strive treat the instrument as an ongoing funding source, while STRC’s persistent trading below par has pushed Strategy toward buybacks aimed at supporting the stock’s price rather than raising fresh capital through it.
