Strive Raises $4.2B, Buys 2,500 Bitcoin as Strategy Trims Holdings
In brief
- Strive expanded Bitcoin holdings to 19,000 BTC worth $1.3 billion via 2,500-coin purchase
- $4.2 billion raised through equity and debt offerings including preferred stock
- SATA product launches June 16 with 13% annual dividend paid daily
- Benchmark-StoneX initiates Buy rating, sets $32 price target
Capital Raise and Holdings Expansion
Strive raised $44 million to ensure dividends on its preferred stock can be paid, while the firm plans to increase the size of a program allowing it to issue an additional $2.1 billion each in both common equity and SATA securities. This capital cushion supports the company's aggressive Bitcoin accumulation strategy.
The company has also shaken off the entirety of its debt, strengthening its balance sheet ahead of the new offerings. Benchmark-StoneX analysts reiterated that the transaction demonstrated Strategy has the flexibility to meet obligations without materially impacting its Bitcoin ownership.
The SATA Innovation
Strive has devised a new product called SATA that offers a 13% annual dividend in daily payouts starting June 16. The security never matures and avoids the need for margin, a structural innovation that sets it apart in the digital asset space.
More notably, SATA is the first listed security in the U.S. to offer routine daily dividends as opposed to traditional quarterly or monthly distributions. This feature appeals to income-focused investors seeking more frequent payouts.
Strategy's Contrasting Move
While Strive bulked up its Bitcoin position, parent company Strategy took a different path. Strategy sold 32 Bitcoin, marking its first Bitcoin sale since 2022. The sale, though modest relative to Strategy's total holdings, signals a shift in capital allocation priorities.
"This is not a zero-sum game. If more investors see digital credit as being an attractive new asset class, then that's going to benefit all of those participants in that space." — Benchmark-StoneX analyst Mark Palmer
Benchmark-StoneX analysts noted that Strive's 19,000 Bitcoin represents just 2.2% of Strategy's stash, underscoring that the two firms operate at vastly different scales. The investment bank reiterated a Buy rating and $570 price target for Strategy, signaling confidence in both entities.
