Strive has enhanced its Bitcoin holdings to 19,000 BTC and plans a $4.2 billion issuance program, aiming to pay daily dividends through its new product, SATA.
Strive's Bitcoin Expansion and Strategic Moves
Strive has significantly bolstered its Bitcoin holdings, increasing its total to 19,000 BTC, valued at approximately $1.3 billion. This move is part of a broader strategy that includes a $4.2 billion expansion of its issuance program.
In a recent SEC filing, Strive disclosed the acquisition of an additional 2,500 Bitcoin at a cost of around $185.2 million, averaging $74,092 per Bitcoin. Concurrently, the firm has secured $44 million to ensure dividend payments on its preferred stock offerings. Notably, Strive has introduced a new variable-rate financial product, SATA, which will provide a 13% annual dividend paid daily starting June 16, making it the first publicly traded security in the U.S. to offer daily dividends.
Analyst Insights
Benchmark-StoneX analysts have initiated coverage on Strive with a “Buy” recommendation, praising the company’s agile, debt-free approach. Analyst Mark Palmer noted that despite both Strive and Strategy targeting similar investors, they can be seen as collaborative competitors, each promoting the concept of digital credit.
“This is not a zero-sum game,” Palmer stated. “If more investors recognize digital credit as an appealing new asset class, it will benefit all participants in that sector.”
Strive's shares saw a 6.6% decrease to $16.06 amid market fluctuations, partly due to Strategy’s recent Bitcoin sale, which was its first since 2022. However, Strive is poised to enhance its issuance program by an additional $2.1 billion in both common equity and SATA, as it prepares for the upcoming daily dividend payments.
Comparative Analysis with Strategy
Although Strive's Bitcoin reserves represent only 2.2% of Strategy's total, analysts highlight that Strive's business model sets it apart from other Bitcoin treasury firms that often rely on debt or equity dilution. The absence of refinancing or collateral risks associated with SATA further strengthens Strive's position. This product, which lacks a maturity date and doesn't involve margin requirements, mitigates risks related to Bitcoin price volatility that could harm shareholder value.
Palmer characterized Strive as “nimble,” capable of swiftly adapting its dividend structure, contrasting with Strategy, which is currently seeking shareholder approval for bi-monthly payouts. Strive has also eliminated all debt, a process that Strategy anticipates will take several years. Meanwhile, Strategy has faced criticism for a recent sale of 32 Bitcoin, which some perceived as a deviation from its core principles. However, Benchmark-StoneX remains optimistic about Strategy's future as a significant net buyer of Bitcoin, primarily through its equity issuance.
