Strive unveils $4.2B fundraising push to accelerate Bitcoin buys

Strive has expanded its fundraising plans by $4.2 billion as the Bitcoin treasury company seeks additional capital for future BTC purchases.

Summary

• Strive plans to expand its ASST and SATA fundraising programs by $4.2 billion to support additional Bitcoin purchases.
• The company recently acquired 1,109 BTC for $85.4 million, increasing its holdings to 16,500 BTC and moving ahead of Coinbase and Riot Platforms.
• Strategy disclosed the sale of 32 BTC worth about $2.5 million, with proceeds expected to support distributions tied to its preferred stock offerings.

According to a June 1 X post by Strive chief executive Matthew Cole, the company expects to increase the size of its at-the-market programs tied to ASST and SATA securities by $2.1 billion each. The proposed expansion would add a combined $4.2 billion in new fundraising capacity.

Cole stated that the decision follows rising liquidity and investor demand for both securities. He also said Strive plans to release an updated balance sheet before U.S. markets open on Tuesday.

The announcement comes days after the company disclosed another large Bitcoin acquisition. In an 8-K filing submitted on May 26, Strive reported buying 1,109 BTC between May 19 and May 22 for approximately $85.4 million. The filing showed an average purchase price of roughly $76,988 per coin.

Following that transaction, Strive’s Bitcoin holdings increased to 16,500 BTC. Data cited in the filing placed the company ahead of Coinbase, which holds 16,492 BTC, and Riot Platforms, which holds 15,680 BTC.

ASST and SATA remain central to Bitcoin acquisition strategy

Funds raised through ASST and SATA form a key part of Strive’s Bitcoin treasury model. Rather than relying on traditional borrowing, the company uses proceeds from these securities to finance additional Bitcoin purchases.

Recent fundraising activity indicates the approach is already bringing in fresh capital. According to data from Bitcoin Treasuries, Strive’s Series A Perpetual Preferred Stock, traded under the SATA ticker, raised approximately $194.3 million during the previous week.

Based on current market prices, that amount could support the purchase of roughly 2,621 BTC. Bitcoin Treasuries provided the estimate in its assessment of the offering.

At the same time, Strive has sought to make the security more attractive to investors. SATA’s dividend yield recently rose to 13%, exceeding the 11.50% yield currently offered by Strategy’s STRC preferred stock.

Corporate Bitcoin accumulation has become increasingly concentrated among a small number of public companies. Although Strive has climbed the rankings with its latest purchases, a substantial gap remains between the firm and the industry’s largest holder.

Strategy pauses accumulation streak while Strive raises capital

While Strive is preparing to sell more securities to fund future Bitcoin acquisitions, Strategy recently moved in the opposite direction.

As reported by crypto.news, Strategy disclosed in a Monday 8-K filing that it sold 32 BTC worth approximately $2.5 million during the final week of May. The company said the proceeds are expected to be used for distributions associated with its preferred stock offerings.

Although the sale represented only a small portion of Strategy’s holdings, the filing showed it was the company’s first reported Bitcoin sale since a tax-related transaction completed in December 2022.

Strategy continues to hold 843,706 BTC, maintaining a substantial lead over every other publicly traded corporate holder. Even so, Strive’s latest fundraising plans indicate the company is continuing to expand its Bitcoin treasury strategy through equity-linked capital markets rather than slowing its pace of accumulation.