Strive Inc. has made a notable move, significantly expanding its Bitcoin holdings. The company recently acquired approximately 490 BTC in a single day through its SATA preferred stock program, a figure that surpasses the entire Bitcoin network’s daily production of roughly 450 BTC following the April 2024 halving.
A New Era for Corporate Bitcoin Holdings
This unprecedented acquisition places Strive in rare company, demonstrating a remarkable capacity to absorb newly minted Bitcoin. Post-April halving, with miners now earning 3.125 BTC per block and around 144 blocks produced daily, the global Bitcoin network adds approximately 450 new coins to circulation every 24 hours. Strive‘s SATA program has shown the ability to absorb more than this entire daily issuance through a single equity instrument in one trading session.
“This move by Strive isn’t just about accumulating Bitcoin; it’s a profound statement on leveraging innovative financial instruments to align corporate strategy with the long-term value proposition of digital assets,” remarked one market analyst.
The Bitcoin for Corporation’s SATA Tracker dashboard showed approximately $66.9 million in total volume, a 13% yield, and 95% of volume above the $100 par threshold. With an estimated capture rate of 58%, ATM proceeds reached approximately $35.3 million, with Bitcoin spot trading at $74,956.
Strive’s Unique Capital Strategy
Dallas-based Strive is a corporate treasury and structured finance company that utilizes preferred equity to accumulate Bitcoin at scale. The firm issues Variable Rate Series A Perpetual Preferred Stock, branded SATA, which will soon pay cash dividends on each business day at a 13% stated annual rate that compounds through frequent distributions.
Strive opts to eliminate traditional debt, leaning on preferred stock instead, seeking long-duration funding that matches Bitcoin’s long-duration profile. Proceeds from SATA offerings fund substantial Bitcoin purchases, the retirement of convertible notes from its Semler Scientific acquisition, and the repayment of a Coinbase Credit loan, which leaves the company’s Bitcoin stack unencumbered.
“By utilizing preferred equity, Strive is pioneering a ‘digital credit’ model that could redefine how companies finance their strategic Bitcoin reserves, offering both yield to investors and stability to their balance sheet,” commented a financial markets expert.
Strive‘s most recent SEC filing confirmed the purchase of 1,109 Bitcoin between May 19 and May 22 at an average cost of approximately $76,989 per coin, bringing total holdings to 16,500 BTC. Founder Vivek Ramaswamy established Strive as a vehicle for “digital credit” strategies, with CEO Matthew Cole leading the current treasury design and capital markets playbook.
FAQ: Frequently Asked Questions
- What is Strive‘s SATA program?
It’s a variable rate preferred stock program used by Strive Inc. to raise capital for Bitcoin acquisitions and other corporate objectives. - Why is Strive acquiring so much Bitcoin?
Strive leverages Bitcoin as a strategic asset for its corporate treasury, utilizing innovative financial instruments to accumulate it and generate returns. - How does Strive finance these Bitcoin purchases?
The company funds its Bitcoin acquisitions through the issuance of its SATA preferred stock, which offers investors a 13% annual yield.
