Strive Hikes Preferred Share Dividend Rate as Bitcoin Treasury Companies Continue to Plunge
It’s another in what’s been a long run of difficult days for bitcoin treasury companies (BTCTCs) as the price of bitcoin BTC$89,629.86 tumbles below $87,000 in morning U.S. action on Monday.
Among those headed lower is Strive (ASST), now down 9% to a record low of $0.78. At the height of the BTCTC mania in the spring, Strive at one point traded above $13.
Attempting to mirror Michael Saylor’s Strategy, Strive last month issued a perpetual preferred series of stock (SATA), raising $160 million, with a dividend rate of 12%. The company’s aim is to keep SATA trading in a tight range near $100. With SATA having dipped and held in the $90 area, Strive today announced a hike in the dividend rate to 12.25%.
Strive currently holds 7,525 bitcoin and the current share price indicates a mNAV (the stock valuation dividend by the value of the company’s bitcoin holdings) of just 1.09.
A check of other BTCTCs Monday finds losses across the board, with Strategy (MSTR) itself down 6.6%. KindlyMD (NAKA), XXI (XXI), American Bitcoin (ABTC) and ProCap (BRR) are lower by 5%-10%.
Semler Scientific (SMLR), which has agreed to merge with Strive (shareholder vote is in January), is lower by 8%.