Strive's Bitcoin strategy accelerates, what does the implication of perpetual preferred stock SATA at the $100 level mean?

Strive’s perpetual preferred stock (SATA) of the Bitcoin treasury company has recently reached a face value of $100 per share for the first time. This milestone is an important signal indicating the stage of the company’s Bitcoin holding strategy. Currently, Strive holds 12,797 Bitcoins on its balance sheet, demonstrating a strong position within the industry.

What the $100 milestone means for enhanced fundraising capability

The trading of SATA shares above their face value indicates that Strive is increasingly able to raise capital more efficiently through the at-the-market (ATM) issuance channel. This mechanism allows the company to use funds raised from additional share issuance to purchase more Bitcoin.

These shares offer a 12% dividend yield, with an effective yield reaching 12.2%. The high-yield dividend tool is supported by investors, which underpins the rising stock price of SATA. While the common stock trades at $0.94, the significant rise in SATA’s price reflects the market’s high valuation of this preferred stock.

Over 12% dividend yield SATA and STRC intensify competition among Bitcoin treasury companies

Similarly, Strategy, a Bitcoin reserve company known for its similar mechanism, has also recently reached its face value. STRC hit its face value earlier this month, with last week’s trading volume reaching $755 million. Of this, $582 million involved trades above face value, marking the highest weekly trading volume to date.

The surge in trading volume of Strategy, which competes with Strive using the same business model, and other companies employing similar dividend strategies, suggests increasing demand in the Bitcoin treasury business market.

The significance of Strive’s goal to expand Bitcoin holdings

The current strength of SATA’s stock price may also indicate a transition to the next phase of Strive’s management strategy. If trading above face value continues, the company can issue even more shares under this favorable environment, using the proceeds to accelerate Bitcoin purchases. Such improvements in capital efficiency are likely to strengthen Strive’s competitiveness as a Bitcoin treasury company.