Samson Mo says SATA rebound may bring Strategy's STRC back to parity

Strive's preferred stock rebounded nearly 16% from its June low, pushing Strategy's STRC back towards a par value of $100.

Strive's SATA preferred stock has rebounded about 16% from its June low and is currently trading at close to $97. Samson Mow, CEO of Jan3, predicts that this rebound could help Strategy's STRC preferred stock return to the $100 par value range.

Market performance and expectations

According to Yahoo Financial data, SATA has climbed from a low of US$83.30, and the current trading price is only about 3% below its design tracking level. The rebound largely erased the preferred stock's decline in late June. At the same time, despite increased demand from major U.S. exchange-traded funds, the STRC remains about 13% below face value.

Mow said that the measures taken by Bitcoin reserve companies to improve their balance sheets and support their preferred shares have begun to rebuild market confidence in these products. He told the media that SATA's move closer to $100 will help convince investors that the financing structures adopted by Strive and Strategy are still valid.

"I think every action Strategy has taken to strengthen its balance sheet and push the STRC back to face value is currently working." He added.

Mow expects the two securities to show a coordinated trend as investors assess whether bitcoin-linked preferred shares can continue to pay dividends and remain near the set value.

"But all factors are synergistic. I think as SATA returns to face value, STRC will follow suit because people will realize that the model has not failed. All companies have capital ready for dividend payments over the next three years or more... There was no reason to panic from the beginning." He further explained.

The recovery of SATA boosts confidence in the Bitcoin preferred stock market

Strive launched SATA in November 2025, aiming to raise funds to expand Bitcoin holdings by not issuing additional common shares. This floating-rate perpetual preferred stock encourages prices to trade around a par value of $100 by adjusting the dividend yield.

Strive has the flexibility to adjust dividend yields during market fluctuations, thereby changing SATA's appeal to investors. Based on its announced financial strategy, the company designed this structure to provide continuous capital access while limiting the dilution effect of ordinary shareholders.

Strategy will launch STRC in 2025 with a similar model. The preferred stock also uses a floating dividend mechanism to maintain a price close to $100 and is classified by Strategy as a "digital credit" product.

During the sell-off wave at the end of June, both products fell sharply below target prices. SATA has since recovered to about US$97, but Yahoo Financial data showed that STRC closed at US$86.89 on July 24, a 2.29% increase on the day, and further rose to US$87.14 in after-hours trading.

Mow believes that the difference in the pace of recovery between the two is a temporary phenomenon rather than evidence of structural failure of the STRC. His prediction is based on investors viewing SATA's rebound as proof that preferred shares issued by Bitcoin reserve companies are still resilient after a sharp decline.

In addition to the rebound in prices, Mow also pointed out that companies are optimizing financing methods and improving Bitcoin position management strategies. He cited Lyn Alden's Orange Juice Reserve Company, which was established on July 15, as an example to illustrate that new entrants adopt different operating models and start with lower Bitcoin acquisition costs.

According to statistics from the BitcoinTreasures platform, Strategy ranks first among companies with a position of 843,775 bitcoins, and Strive holds 19,921 bitcoins, ranking seventh among listed companies tracked by the platform.

These positions bring varying degrees of Bitcoin exposure, but both companies rely on capital market products to support their reserve plans. For Strive, SATA provides a way to obtain new capital without selling common stock, while Strategy uses STRC and other securities to finance Bitcoin holdings.

ETF demand supports the STRC discount pattern

Although the security continues to trade at a large discount, institutional demand has pushed STRC to become the number one position in the three large U.S. preferred stock ETFs.

Michael Saylor, co-founder and executive chairman of Strategy, disclosed on July 24 that STRC is currently the largest position in the BlackRock iShares Preferred Stock and Income Securities ETF, the Virtus InfraCap U.S. Preferred Stock ETF, and the VanEck Preferred Securities ETF excluding Financial Industry.

According to data shared by Saylor, the three funds together hold US$756 million worth of STRC. These portfolios also include preferred shares issued by established U.S. companies, allowing ETF investors to gain indirect exposure to Strategy bitcoin-linked securities while allocating traditional income products.

Saylor posted on social platforms that these ETF positions prove that Strategy's "digital credit" securities are entering the institutional portfolio. Although position data showed that asset managers had allocated large amounts of capital to STRC, its closing price on July 24 was still at a 13.11% discount to $100.

The discount on STRC is crucial to Strategy because the company raises funds for Bitcoin purchases by selling preferred shares. If shares are issued at near or above par value, Strategy can invest the proceeds directly in Bitcoin; however, a large discount reduces the amount of money it can raise with each new issue.

Therefore, when the STRC trading price is around US$87, the efficiency of financing per share will be significantly reduced compared to when the STRC is issued close to US$100. Even if demand for existing ETFs continues, lower prices could undermine the economic benefits of using the security for Bitcoin accumulation.

Mow's outlook ties SATA's recovery to improvements in these conditions. If investors view Strive's return to par value as evidence of the stability of floating rate Bitcoin preferred shares, then the STRC is expected to attract enough demand to narrow the discount and restore more efficient financing channels for Strategy.