Bitcoin funding channel opens as Strive's SATA stake reaches par value

Strive (ASST) has garnered attention in its newest move in its strategy, positioning itself as a bitcoin treasury company. The company’s preferred stock, SATA, surpassed a significant threshold last Friday, trading above its $100 par value for the first time. This development suggests that Strive may be more actively using preferred equity products to fund bitcoin purchases. Currently, Strive has 12,797 bitcoins on its balance sheet, with instruments like SATA playing an increasingly important role in providing financial backing for these assets.

What does it mean when SATA breaks the $100 level?

Strive’s perpetual preferred capital, SATA, offers a dividend rate of 12% and an effective yield of 12.2%. Trading above the face value indicates an increase in investor confidence and demand for this product. Notably, its peg above par value allows the company to issue additional shares through the sales channel at market price (ATM), thereby amassing the necessary liquidity to expand its bitcoin portfolio.

Here’s how this mechanism works: when the stock is trading above face value, the company can introduce new units to the market at this higher price. This structure offers an attractive dividend yield for buyers, making it an effective tool for companies looking to accelerate bitcoin accumulation.

Strategy’s STRC model: repeating success

Strategy (MSTR) is also continuing its ventures into a similar preferred share structure, STRC. STRC also remained above par value last week, showcasing Strive’s success. Last week, SSTRC recorded a trading volume of $755 million, with $582 million of this volume occurring above the $100 price level.

This trading volume was recorded as the highest level of any week exceeding $100 million. According to BitcoinQuant’s predictions, it is possible that trading volume will remain sustainable at these levels. Strategy’s goal of producing approximately 2,636 bitcoins through its ATM program further reinforces this dynamic.

In his social media post regarding these developments, Michael Saylor emphasized the importance of STRC and SATA both reaching the notional value level. This comment highlighted how critical it is for the market to have preferred stocks trading above face value.

New financing dynamic of Bitcoin treasuries

The method of financing bitcoin purchases through preferred stocks offers an alternative approach to traditional borrowing. The use of preferential capital vehicles by companies like Strive and Strategy attracts investors who demand high dividends while giving companies the flexibility to increase their bitcoin holdings quickly.

This model provides the opportunity to establish a balanced financial structure while avoiding borrowing costs. Especially as the bitcoin price remains at high levels, companies are expected to use such financing instruments more actively.

Critical support levels in XRP’s downtrend

In the broader trend of risk aversion in the cryptocurrency market, XRP has also experienced significant losses. XRP fell approximately 5.5% from $1.91 to the $1.80-$1.81 region. This movement reflects the ongoing selling pressure in high-beta tokens.

XRP, which broke down with heavy trading volume around the critical support level of $1.87, completely lost its gains last week before buyers stepped in in the $1.78-1.80 range. Market participants currently see $1.80 as a key support level.

From a technical analysis perspective, XRP’s ability to embark on a sustained rally above the $1.87-$1.90 range was considered a sign of a corrective pullback. However, the current picture suggests that these expectations may not materialize in the short term. Traders are closely monitoring the developments and taking into account the possibility of a continuation of the consolidation period within the support level range.