Strive Acquires $109 Million in Bitcoin, Brings Preferred Stock Value Near $1 Billion
Strive, a Nasdaq-listed asset manager, purchased an additional 1,375 Bitcoin for approximately $109 million between August 31 and September 4 at an average price of $79,281 per BTC. This acquisition brings its total holdings to 24,531 BTC, valued around $1.9 billion based on current prices. Strive is part of a growing trend among public companies that raise capital specifically for Bitcoin purchases, following the strategy pioneered by Michael Saylor’s MicroStrategy in 2020. The firm primarily funds these acquisitions through its Variable Rate Series A Perpetual Preferred Stock (SATA), which currently has $999 million in notional value outstanding and pays a fixed dividend of 13% annually. The preferred stock model allows Strive to avoid diluting shareholders or taking on traditional debt. However, the approach carries risks if Bitcoin prices fall significantly, as seen with Strategy’s STRC shares dropping below par this year due to price declines.
Tickers: $ASST
Topics: Bitcoin Cryptocurrency Investment Fundraising Preferred Stock