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Following
BTC Strive's SATA plan to raise approximately US$55 million this week, equivalent to nearly 638 bitcoins.
It is reported that Strive's SATA (At-The-Market) preferred stock issuance plan brought in approximately US$55 million this week, which is enough to purchase nearly 638 bitcoins. However, this ability to raise funds directly depends on the stock price performance of preferred stocks. Since Wednesday, SATA's share price fell below par value of $100, making it impossible for the company to continue issuing new shares through this channel. This limitation highlights the risks involved in such strategies inspired by the Strategy model.
Overview of core points
According to market tracking data, SATA plans to bring in approximately US$55 million this week, equivalent to the value of 638 bitcoins. On three of the five trading days, SATA shares closed below their $100 par value, which somewhat slowed the pace of new share offerings. As of October 2, according to Strive's latest official filing documents, the company holds 29,462 bitcoins and 1,304,902 additional preferred shares.
US$100 threshold becomes financing bottleneck
The financing mechanism is based on a simple logic: Strive held 27,462 bitcoins at the end of September, then gradually sold SATA preferred shares through a "market to market"(ATM) process, and used the funds raised to strengthen its bitcoin reserves. However, this mechanism imposes a prerequisite: stock prices must remain above par value of $100. During the week, SATA exceeded that threshold only on Monday and Tuesday; since Wednesday, its share price fell below that level, cutting off its main source of funding for Bitcoin purchases.
According to tracking data, despite price pressure, Strive raised approximately $55 million this week, enough to acquire nearly 638 bitcoins. This estimate is based on transactions traded above face value and ratios calculated based on previous company statements. Bitcoin was priced at approximately $82,800 on Friday, and the above financing amount is in line with the announced size.
Strive leads Strategy
Michael Saylor popularized this strategy at Strategy through STRC (its perpetual preferred variable rate stocks). Strive uses the same principles, but on a smaller scale. In an October 5 filing with the Securities and Exchange Commission, Strive noted that 1,304,902 additional preferred shares were issued between September 25 and October 2, with a nominal value of more than $130 million.
During the same period, Strategy did not sell any STRC shares, but instead purchased 334 bitcoins through common stock financing, bringing its total bitcoin reserves to 848,000. However, Saylor views Strive as an ally rather than a competitor.
Trading dividends in exchange for long-term financing
is not without costs. Although each SATA issue brings immediate capital, it also increases the dividend burden Strive will have to pay in the future. As of September 30, the company estimated its annualized dividend obligation to be $168.2 million, corresponding to $1.294 billion in stock issued at face value.
In addition, its portfolio is still exposed to the risk of Bitcoin price fluctuations. As of September 30, Strive held 28,000 BTC units with an average buying price of US$90,170, while the market value at the time was approximately US$2.34 billion. At that time, Bitcoin was trading at a price lower than its acquisition cost. For the 2,000 bitcoins purchased in the following week, the average acquisition cost per coin was approximately US$84,422.
The release of the next official filing document will reveal the exact balance of positions this week. Prior to this, the number of 638 bitcoins was still only an estimate. But one thing is certain: Strive's model will continue to work as long as investors are willing to buy SATA shares at a price above face value.
