Strive plans to expand its fundraising capacity by $4.2 billion to support future Bitcoin purchases. The move strengthens the Strive Bitcoin treasury strategy. Chief executive Matthew Cole announced the plan to investors publicly in a June 1 post on X.
Cole said Strive expects to increase two at-the-market programs. This would provide each program with $2.1 billion in additional capacity. The securities refer to ASST and SATA.
The planned expansion would add $4.2 billion in fundraising room. Cole said the decision was strengthened by stronger liquidity. He also noted increased demand from investors for both securities.
Also Read: Strategy Sells 32 BTC for $2.5 Million as Holdings Stay Above 843,000 BTC
Strive Raises Bitcoin Holdings to 16,500 BTC
Strive also plans to release an updated balance sheet. Cole said the update will be before the U.S. stock markets open Tuesday. Investors are monitoring the company’s exposure to Bitcoin.
The news comes after another Bitcoin buy. In a May 26 8-K filing, Strive said it bought 1,109 BTC. The buying took place between May 19 and May 22.
Strive paid approximately $85.4 million for the coins. The average price in the filing was close to $76,988 per BTC. With that purchase, it ultimately increased its stake to 16,500 BTC.
The filing cited data showing Strive ahead of Coinbase, which holds 16,492 BTC, and Riot Platforms, which holds 15,680 BTC.
The Strive Bitcoin treasury model is financed by funds raised via ASST and SATA. The company uses the proceeds of such securities to buy bitcoins. It provides Strive with an avenue for financing other than traditional loans.
The latest fundraising numbers revealed new capital coming into the Strive Bitcoin treasury. According to Bitcoin Treasuries, SATA raised approximately $194.3 million last week. SATA is Strive’s Series A Perpetual Preferred Stock.
Bitcoin Treasuries estimated that the amount could fund about 2,621 BTC. This estimate was based on market prices at that time. That number reflects the potential increase of the Strive Bitcoin treasury through new funding.
Strive Bitcoin Treasury Gains as SATA Yield Rises
Strive has also increased SATA’s dividend yield. This increased the yield to 13%. The yield was higher than Strategy’s STRC preferred stock, which yields 11.50%.
Several public companies still hold a majority of corporate bitcoins. The Strive Bitcoin treasury has risen in that ranking. However, Strategy has a much wider lead.
Strategy recently reported a small Bitcoin sale. According to a Monday 8-K filing, it sold 32 BTC. The sale was worth about $2.5 million.
Strategy said the funds will be raised to finance distributions on preferred stock. The filing indicated it made its first-ever bitcoin sale since December 2022. The previous deal was associated with tax planning.
This leaves Strategy with 843,706 BTC in its holdings. It continues to be the biggest public company Bitcoin holder. The Strive Bitcoin treasury expansion demonstrates that Strive is relying on securities markets for funding accumulation.
Strive is seeking an additional $4.2 billion, which could expand its purchasing power. The Strive Bitcoin treasury plan relies on the consistent demand of investors. Its next balance sheet update may show how far that plan has advanced.
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