Strive Asset Management disclosed that it purchased 2,500 bitcoins between May 23 and June 1, for a total of approximately $185.2 million, at an average purchase price of $74,092 per bitcoin. The 8-K filing shows that after the transaction, the company's bitcoin holdings increased to 19,000 bitcoins, further expanding its position among publicly traded companies holding bitcoin.
Holdings rose to 19,000 units.
The company disclosed that following this increase, Strive's total Bitcoin holdings reached 19,000. The document also mentioned that the company's BTC return to date this quarter is 23.0%, and its year-to-date BTC return is 36.7%.
In addition to increasing its Bitcoin holdings, Strive has also increased its cash reserves to maintain an 18-month dividend reserve. This arrangement is related to its overall capital structure and aims to fund its Bitcoin accumulation plan while supporting shareholder distributions.
Proposed expansion of $4.2 billion financing facility
Strive CEO Matthew Cole said the company expects to increase the size of its ASST and SATA at-the-market initiatives by $2.1 billion each, for a total of $4.2 billion in new funding.
ASST corresponds to common stock financing, while SATA is related to a preferred stock structure. The company stated that the funds raised through these securities instruments can be used to continue purchasing Bitcoin, rather than relying solely on traditional financing channels.
According to the data cited in the article, SATA raised approximately $194.3 million last week, which, based on recent prices, is enough to support the purchase of approximately 2,621 Bitcoins. If the entire $4.2 billion quota is raised and invested, at $70,000 per Bitcoin, it could theoretically correspond to the purchase of approximately 60,000 Bitcoins.
Bitcoin Treasury Company Gains Attention Again
Strive's increased holdings come as the market re-examines the financial structure of Bitcoin Treasury companies. Previously, Strategy, with a larger Bitcoin holding, disclosed that it sold 32 Bitcoins between May 26 and May 31, raising approximately $2.5 million to pay preferred stock dividends. This was the company's first publicly disclosed Bitcoin sale in over three years.
The report also mentioned that some companies employing similar treasury strategies have recently adjusted their plans, including selling small amounts of Bitcoin, reducing their holdings, or reassessing their arrangements. For Strive, the pace of its next phase of expansion will depend on funding progress, the price of Bitcoin, and market demand for yield-generating products.
Additional information:The article mentions that SATA recently offered a dividend yield of approximately 13%, higher than the approximately 11.50% level of STRC preferred stock cited in the Strategy article.
