Strive’s preferred stock hits par value, unlocking bitcoin funding channel

Strive (ASST), a bitcoin BTC$93,088.67 treasury company, saw its perpetual preferred equity (SATA) reach par value of $100 for the first time on Friday, a level that allows it to sell more of the stock to fund further bitcoin purchases.

Strive’s preferred stock offers a dividend rate of 12%, with an effective yield of 12.2%. Strive currently holds 12,797 BTC on its balance sheet, while the common share is priced at $0.94.

SATA is structured similarly to Strategy’s (MSTR) equivalent, Stretch (STRC), and trading above par allows the company to issue more through an at-the-market (ATM) sales channel, raising cash to bolster its bitcoin holdings. Stretch hit par earlier this month, and interest held it above that level last week.

According to BitcoinQuant data, STRC recorded $755 million in trading volume last week, with $582 million of that volume occurring above par value. That’s the largest above-$100 volume of any week to date. BitcoinQuant estimates that this level of sustained trading could enable Strategy to generate approximately 2,636 BTC through the ATM program.

On Friday, Strategy (MSTR) executive chairman Michael Saylor commented “probably nothing” in an X post, referencing both STRC and SATA reaching par. The comment highlighted the significance of perpetual preferred equities trading above par.