Strive announced that it purchased 500,000 shares of Strategy’s perpetual preferred stock to strengthen its balance sheet.
- Strive also announced that it added 179 Bitcoin, bringing its holdings to about 13,311 BTC.
- Michael Saylor reacted to it, saying that the “Bitcoin capital stack is taking shape.”
- According to the company, the income from STRC will help support its Bitcoin-linked SATA product, which raised its dividend rate to 12.75%.
Strive Inc. (ASST) is deepening its Bitcoin (BTC) treasury strategy, buying $50 million of Strategy’s STRC preferred stock and adding more Bitcoin, a move that drew praise from Strategy (MSTR) Executive Chairman Michael Saylor.
Strive Inc. (ASST) CEO Matt Cole shared the update on Wednesday, confirming the company’s purchase of 500,000 shares of STRC. Strategy Executive Chairman Michael Saylor reacted to the news, saying, “Bitcoin capital stack is taking shape.”
Strive, purchases STRC to generate yield from Strategy's STRC, which it then uses to fund its own Bitcoin-related financial products.
The company, co-founded by Vivek Ramaswamy, explained that the addition of STRC to its balance sheet reflects its view that it is a high-quality credit instrument with a compelling risk-return profile that offers clear advantages over traditional fixed income assets.
Shares of Strive were down 0.1% on Wednesday afternoon. On Stocktwits, the retail sentiment around ASST moved from ‘bullish’ to ‘neutral’ as chatter levels around it remained ‘low’ over the past day.
Company Buys Additional Bitcoin
The company now holds over 13,311 BTC after the Bitcoin treasury company bought 179 BTC.
It also announced that SATA, its digital credit product, raised its dividend rate to 12.75%. The company declared a dividend of $1.0625 per share for shareholders of record at the close of business on April 1, with payment scheduled by April 15 this year.
The SATA dividend reserve increased to cover about 18 months of dividend reserves interest payments, including cash, cash equivalents, and STRC holdings. Its combined Bitcoin holdings, STRC investment, and cash reserves now cover more than 19 years of SATA interest payments. Strive held $143.4 million in cash and cash equivalents as of Monday.
Ben Werkman, Strive’s Chief Investment Officer, said the move reflects the firm’s continued Bitcoin strategy. “This latest purchase strengthens our balance sheet and reflects our disciplined approach to continued Bitcoin accumulation,” Werkman said.
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