Strategy Sells 32 BTC; Strive Raises $4.2B, Buys 2,500 BTC
Strategy sold 32 BTC for about $2.5M; Strive raised a $4.2B issuance program, bought 2,500 BTC and now holds 19,000 BTC.
Publicly traded Bitcoin treasury firms took different approaches this week. Strategy sold 32 BTC for about $2.5 million, while Strive launched a $4.2 billion issuance program and bought 2,500 BTC, taking its holdings to 19,000 BTC, worth about $1.3 billion.
Strive disclosed in an SEC filing that it purchased 2,500 BTC last week for roughly $185.2 million, at an average cost near $74,092 per coin. The filing noted the firm also raised $44 million to ensure dividends on a new preferred stock and increased cash reserves to maintain an 18-month dividend reserve.
Strive said it will expand a program to issue an additional $2.1 billion in common equity and $2.1 billion in its preferred instrument, SATA, for a combined potential of $4.2 billion. SATA will pay a 13% annual dividend through daily distributions beginning June 16 and is designed to trade near a $100 par value. When the preferred shares trade above par, Strive plans to issue more and use proceeds to buy Bitcoin. Benchmark-StoneX highlighted that SATA’s perpetual structure avoids maturity and margin risks.
Benchmark-StoneX initiated coverage of Strive with a Buy rating and a $32 price target, noting Strive has eliminated debt and preserved the dividend reserve. Strive reported quarter-to-date BTC yield of 23.0%, year-to-date BTC yield of 36.7% and an amplification ratio of 57.0%.
Strategy announced its 32 BTC sale, its first since 2022. The company had earlier used a portion of cash reserves to repurchase debt. Benchmark-StoneX reiterated a Buy rating and a $570 price target for Strategy, writing that the small sale demonstrated the company could meet obligations without materially reducing its Bitcoin ownership and forecasting Strategy will remain a net buyer funded primarily through issuance of its Stretch preferred product.
Strive’s shares fell about 6.6% to $16.06 on Tuesday. Analysts described the two companies as serving a similar investor base while offering preferred-stock products engineered to trade near par so issuances can be used to buy Bitcoin when demand is strong.
“This is not a zero-sum game,” Mark Palmer said, adding broader investor acceptance of digital credit would benefit multiple participants.
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