Bitcoin treasury company Strive acquired 4,045 Bitcoin for approximately $335 million between October 12 and 16, according to a Monday filing with the US Securities and Exchange Commission. The purchase, executed at an average price of $82,803 per coin including fees, increased the company's total holdings to 36,818 BTC. This accumulation positions Strive as the fourth-largest publicly traded corporate Bitcoin holder, surpassing MARA Holdings, with reserves valued at roughly $3 billion.
The acquisition was funded through equity financing mechanisms, specifically warrant exercises that generated approximately $369 million in proceeds on October 12 and 13. These transactions resulted in the issuance of 13.7 million common shares, raising Strive's effective share count by 12.4%. This dilution closely matched the 12.3% increase in Bitcoin holdings, leaving the amount of BTC per share largely unchanged. The strategy follows a previous week's purchase of 3,311 BTC, where holdings grew 11.2% against a 9.4% rise in share count.
Concurrently, Strive announced the launch of SATS, a new preferred stock issue carrying a fixed 15% annual dividend payable each business day beginning November 9, subject to board approval. The company priced a $630 million offering of these preferred shares last week, with proceeds potentially designated for further Bitcoin acquisitions. Following these announcements, Strive (ASST) shares rose approximately 7.7% to $25.95 in late-morning trading on Monday.
Strive’s aggressive accumulation highlights a specific capital allocation model where equity dilution is deliberately synchronized with asset growth to maintain constant Bitcoin-per-share metrics. By leveraging warrant exercises and high-yield preferred stock offerings, the company secures liquidity without traditional debt constraints, effectively converting investor demand for yield into direct crypto exposure. This approach contrasts sharply with competitors like MARA Holdings, which faced reports of selling holdings amid similar market pressures, suggesting divergent strategies among major corporate holders regarding reserve management and shareholder value preservation.
The introduction of SATS preferred stock with a daily-payable 15% dividend signals a shift toward sophisticated financial instruments designed to attract institutional capital seeking predictable income streams tied to crypto performance. However, this structure introduces operational risk, as sustaining such high dividends requires consistent appreciation or strategic monetization of reserves. Investors must monitor whether future equity issuances continue to match Bitcoin purchases precisely, as any deviation could alter the fundamental value proposition of holding ASST shares relative to direct Bitcoin ownership.
