Strive's floating-rate perpetual preferred stock, with a $100 stated amount and daily dividend accrual, used to raise capital partly for bitcoin purchases.
Strive's SATA preferred stock raised an estimated $55 million this week through its at-the-market program, enough for about 638 bitcoin. Nearly all of it came on the two days the shares held their $100 par, because issuance stops below that price.
Reality
Strategy's own buybacks made up over 20% of weekly STRC trading in most of September, Keyrock found. For holders the larger exposure is the price, since Keyrock found STRC four to eight times less liquid once it drifts more than 1% from its $100 par.
Reality
Strive bought 2,000 bitcoin for $169 million last week, its biggest buy in four months, while its $90,170 average cost sat above a price near $86,000. Its $284.7 million in cash also has to pay a roughly 13% preferred dividend, so further buying depends on selling more SATA.
Reality
The asset manager paid for the coins with fresh common and preferred stock. Back out the two disclosed percentages and the fully diluted share count grew about 4% in a single week.
Perspective Coverage
4 publishersReality
Strive paid for last week's 469 bitcoin entirely with preferred stock. The coupon on its $1.04 billion of SATA is 13%, charged every business day, against a treasury of 25,000 coins. Warrants struck at $27 expire in mid-October.
Perspective Coverage
3 publishersReality
Strive outbought Strategy again on Monday, 1,355 coins against 950, and its stack ranks fifth among public holders. The weekly checks come out of a perpetual preferred that pays 13% and crossed $1 billion of notional this month.
Reality
Nine days of purchases paid for by a security that disburses cash every business day is a demand read on the preferred rather than on bitcoin. The coins Strive bought last week at $79,431 are marked at $77,100.
Reality