Funding
Strive Acquires 1,110 Bitcoin, Shareholders See Minimal Yield Increase
Strive, a Bitcoin treasury company, has made headlines by purchasing 1,110 Bitcoin over a week, yet the actual benefit to its common shareholders has been marginal. Following the acquisition, the effective Bitcoin per common share rose by just 1.19% due to an increase in the company's share count.
From August 17 to August 21, Strive acquired the Bitcoin at an average price of approximately $73,409, leading to a total holding increase from 20,246 BTC to 21,356 BTC. However, the number of effective common shares grew by 4.24%, from 86,037,123 to 89,683,423, diluting the per-share Bitcoin benefit.
Strive's filing also indicated an increase in its preferred stock, SATA, which resulted in an estimated $5.74 million in annualized preferred dividends. The preferred stock's annualized rate of 13% contributes to its attractiveness, but it also complicates the yield for common shareholders.
Despite the modest increase in Bitcoin per effective common share, Strive's strategy of using preferred equity for acquisitions sets it apart from other corporate Bitcoin strategies that often rely on debt instruments. This approach allows Strive to accumulate Bitcoin without the burden of interest obligations.
FAQ
What recent acquisition did Strive make?
Strive acquired 1,110 Bitcoin over a week, increasing its total holdings from 20,246 BTC to 21,356 BTC.
How did the acquisition affect the Bitcoin per common share for Strive's shareholders?
The effective Bitcoin per common share rose by just 1.19% due to a 4.24% increase in the company's share count, which diluted the per-share Bitcoin benefit.
What was the average price paid for the Bitcoin acquired by Strive?
Strive acquired the Bitcoin at an average price of approximately $73,409.
What impact did the increase in preferred stock have on Strive's financials?
The increase in preferred stock, SATA, resulted in an estimated $5.74 million in annualized preferred dividends, with an annualized rate of 13%.
How does Strive's acquisition strategy differ from other corporate Bitcoin strategies?
Strive's strategy of using preferred equity for acquisitions allows it to accumulate Bitcoin without the burden of interest obligations, unlike other strategies that often rely on debt instruments.