Strive has revised its capital allocation plan, raising the dividend rate on its SATA preferred shares by 25 basis points to 12.75%. The company said shareholders will receive a dividend payment of $1.0625 per share on April 15. It also set a target trading range of $99 to $101 for SATA shares and said it does not plan to issue new shares below $100.
At the same time, Strive disclosed that it recently purchased 179 bitcoin, lifting its total bitcoin holdings to about 13,311 BTC. The company also acquired 500,000 shares of Strategy’s STRC preferred stock, valued at $50 million. According to the company, that position is meant to support returns while keeping liquidity balanced alongside its existing cash reserves.
Executives say the moves are aimed at strengthening SATA
Management said the latest financial steps are designed in part to improve the credit profile of the SATA preferred shares. Chief Executive Officer Matthew Cole said the changes are intended to stabilize the preferred share trading range while also allowing common shareholders to benefit over time from Strive’s bitcoin exposure.
Cole said the company is trying to produce stronger and more sustainable returns for preferred shareholders through changes in asset allocation and dividend policy. Chief Risk Officer Jeff Walton added that the STRC purchase offers better returns and liquidity than traditional corporate bonds, giving Strive more flexibility in handling short- and medium-term capital needs.
Cash, bitcoin and STRC reserves said to cover interest for over 19 years
As of March 9, before the latest STRC acquisition, Strive held $143.4 million in cash and cash equivalents. The company said its combined reserves of bitcoin, STRC and cash are now sufficient to cover SATA interest payments for more than 19 years, pointing to a sizable liquidity cushion.
Strategy, which remains closely watched by the market, also reported a major bitcoin purchase last week. The company bought about 17,994 BTC for $1.28 billion, bringing its total holdings to 738,731 BTC. The combined market value of that portfolio was estimated at roughly $50 billion.
B. Riley assigns buy ratings to both Strive and Strategy
After the announcements, investment bank B. Riley Financial updated its view on both companies and assigned buy ratings to Strive and Strategy. Its target price was set at $175 for Strategy shares and $12 for Strive. The bank said the recent pullback in bitcoin and bitcoin-linked equities may have opened up attractive value levels.
The report also said analysts continue to view Strategy as the world’s largest corporate holder of bitcoin, supported by a capital structure that includes convertible bonds and multiple preferred share series. For Strive, the article cited a balance sheet with about 13,132 BTC in reserves, a $2.5 billion asset management arm, and the all-stock acquisition of Semler Scientific. In this latest company update, however, Strive’s disclosed bitcoin total was about 13,311 BTC.