Strive seizes $162M Bitcoin stash overtaking Galaxy Digital

Strive has surpassed Galaxy Digital as one of the largest corporate holders of Bitcoin. The Bitcoin treasury and asset management firm added 7,525 BTC to its portfolio, sourced directly from the open market at a total purchase price of approximately $162 million.

This latest purchase places Strive ahead of Mike Novogratz’s Galaxy Digital, which owns approximately 6,894 BTC, according to BitcoinTreasuries.net.

The sale is the latest sign of a burgeoning arms race among publicly traded companies that view an investment in Bitcoin as a means to increase their holdings. It is a harbinger of a larger macro trend, where investment institutions and companies are starting to view Bitcoin as a key treasury asset, especially amid fluctuations in monetary policy, which is driving further global interest in digital reserves.

Strive dips into IPO funds to grow Bitcoin treasury

Strive purchased the asset with proceeds from its recent initial public offering of new issue SATA noncumulative perpetual preferred stock, which was offered at $80 per share. It was an oversubscribed IPO that had been upsized before going public — a strong signal of demand from institutional investors, if there ever was one.

In a press release, Strive CEO Matt Cole stated that the move to perpetual preferred equity, rather than selling common stock or corporate debt, is an “innovative model” for corporate Bitcoin buying and holding. The offering provides Strive with an opportunity to expand its Bitcoin portfolio while ensuring that ASST’s common stockholders are not diluted.

Cole said it was a “make or break” moment for the company. He added that Strive is the first Bitcoin treasury firm to reach this milestone through strategic investments in perpetual preferred equity, demonstrating that Bitcoin can serve as a disciplined foundation for long-term value creation.

Corporate buying of Bitcoin has been active across all sectors. Among those that have increased their holdings in recent weeks are the digital currency company CleanSpark, Trump Media and Technology Group, formed by Donald J. Trump, and Tesla. Institutional inflows to Bitcoin ETFs and structured investment vehicles are also continuing to increase, with unconfirmed reports that JPMorgan has been allocated $340 million of BlackRock’s BTC ETF.

For Strive, the rise in Saudi Arabia is just the first snowflake before their intended accumulation avalanche. The company has indicated it’s likely to make more purchases of Bitcoin if market conditions remain conducive to its corporate treasury model.

SATA’s dividend strategy delivers a 12% return on capital

The SATA preferreds pay an adjustable payout, which, in its simplest form, is intended to yield 12% per year, known as the Return of Capital (ROC). That permits payouts to be handled differently for tax purposes if there is an advantage to any given investor. Strive said that it would adjust the dividend rate to keep the stock trading between $95 and $105 per share.

SATA is what CIO Ben Werkman called a financial vehicle that merges the yield-stabilizing nature of a conservative type of fixed income with Bitcoin’s capital dollarization efficiency. He said the design is intended to provide investors with a predictable yield, while enabling Strive to grow its Bitcoin treasury over time.

Bitcoin’s liquidity, transparency, and round-the-clock global trading make it an attractive asset for treasury-backed yield strategies, said Jeff Walton, the company’s Chief Risk Officer. Walton stressed that Bitcoin’s track record and market structure enable Strive to  model risk and return more easily than in many alternative asset classes.

With the most recent acquisition, Strive now sits just below GD Culture Group and above Galaxy Digital in terms of corporate Bitcoin holdings. The velocity with which the company has grown is a testament to its unabashed approach and willingness to place Bitcoin at the heart of its capital formation model.

At a time when Bitcoin-supported corporate structures are gaining popularity worldwide, it is reasonable to assume that Strive’s approach will be of interest not only to traditional market investors but also to crypto-oriented players.

Get $50 free to trade crypto when you sign up to Bybit now