Strive, supported by Vivek Ramaswamy, has surpassed Tesla in Bitcoin holdings after acquiring 179 additional Bitcoin, bringing its total to approximately 13,311 Bitcoin valued at nearly $940 million. In contrast, Tesla's holdings have remained static at 11,509 Bitcoin since late 2024.
As a result of this acquisition, Strive now ranks as the 11th largest corporate Bitcoin holder, positioned just after CleanSpark, which recently reduced its holdings by offloading 150 Bitcoin.
In conjunction with enhancing its Bitcoin portfolio, Strive announced significant adjustments to its preferred stock offering aimed at bolstering its financial attractiveness. The company has raised the dividend rate for its SATA preferred shares by 0.25%, setting it at 12.75%. Each share will yield a quarterly payout of $1.0625.
Strive has also refined the targeted trading range for its SATA shares, now set between $99 and $101, a reduction from the previous range of $95 to $105. Additionally, the company aims to prevent any issuance of new shares at prices below $100, enhancing stability for investors focused on income in the digital asset market.
In another strategic move, Strive allocated $50 million to purchase 500,000 shares of Strategy Variable Rate Series A Perpetual Stretch Preferred Stock, or STRC. The Chief Risk Officer of Strive highlighted that this acquisition aims to harness STRC's appealing risk-return profile while promoting efficiency and resilience within the capital framework.
With these investments, Strive ensures that its dividend reserve lasts for 18 months, providing a financial cushion comprising 12 months of cash reserves and an additional six months backed by STRC, based on its current market value.
Strive's management stated that the collective reserves from Bitcoin, STRC, and cash are sufficient to cover more than 19 years of interest payments for SATA, indicating a robust financial strategy. Strive's CEO emphasized the potential of Digital Credit as a multi-trillion-dollar market opportunity and articulated that each recent update is designed to fortify credit quality and mitigate volatility within its financial offerings.