Strive and Strategy's Bitcoin Strategies Take Different Turns
Two companies, Strive and Strategy, use the same funding model to buy Bitcoin, but have taken opposite approaches in recent weeks.
Strive (NASDAQ:ASST) added 1,375 BTC between August 31 and September 4 at an average price of $79,281 per coin, lifting its total holdings to 24,531 BTC. Meanwhile, Strategy (NASDAQ:MSTR | MSTR Price Prediction) did not buy any new Bitcoin during the same period, but instead spent $176.3 million buying back its preferred stock.
The reason for this difference in approach lies in the performance of their respective preferred shares: Strive's SATA is trading near its par value of $100, while Strategy's STRC has fallen below $98. As a result, Strive can continue to raise funds by issuing new SATA shares, which pay a 13% annualized dividend, while Strategy sees buying back STRC as a more attractive option.