Strive’s preferred stock has generated enough capital to fund Bitcoin purchases for nine consecutive days, according to a September 1 post from BitcoinTreasuries.NET. The company most recently bought 104 BTC on Tuesday.
While corporate balance sheets have become an important source of Bitcoin demand, the number of active buyers has fallen sharply. That makes Strive one of the few companies providing regular bids for Bitcoin, which was trading at approximately $77,000.
The $77,000 figure refers to Bitcoin’s spot-market price rather than Strive’s acquisition cost. BitcoinTreasuries.NET’s live dashboard listed BTC at $77,100, while Strive paid an average of $79,431, including fees and other costs, for purchases made between August 24 and August 28.
Strive becomes a rare source of corporate Bitcoin demand
The timing of Strive’s buying streak is significant. The Glassnode Strategy Watch Report published on August 27 said Bitcoin treasury companies were net purchasers in July, even as corporate buying declined and spot Bitcoin ETF demand recovered.
Bitcoin holdings among these treasury vehicles ranged from 2,300 BTC to 7,600 BTC. Meanwhile, ETF flows shifted from net outflows of 70,400 BTC at the beginning of July to net inflows of 5,400 BTC by the end of the month. Glassnode said the shift indicated growing regulated demand alongside reduced balance-sheet activity.
Galaxy Research recently warned of mounting pressure on the digital asset treasury model. The firm said a significant decline in equity premiums could make new share issuances increasingly dilutive.
Strive’s situation is different. BitcoinTreasuries.NET noted that the company has continued issuing SATA without conducting buybacks. The nine-day Bitcoin purchasing streak therefore provides a useful indication of ongoing demand for Strive’s preferred stock.
What is SATA?
SATA is not a subsidiary. It is the ticker symbol for Strive’s Variable Rate Series A Perpetual Preferred Stock, which trades on Nasdaq alongside the company’s Class A common stock, ASST.
Strive announced in May that SATA would begin paying dividends every business day on June 16 at an annual rate of 13.00%.
Strive CEO Matthew Cole called SATA “a true zero-to-one innovation” and said it is “the first listed security in the history of U.S. capital markets to pay cash dividends every single Business Day.”
That structure supports Strive’s Bitcoin acquisition strategy. In a March article, NYDIG’s Greg Cipolaro described SATA and Strategy’s STRC as:
“actively managed, capital markets–dependent liability structures backed by a reserve asset, bitcoin.” — Greg Cipolaro, NYDIG
The Digital Credit report published by BitcoinTreasuries.NET in July explains why investors may find the model attractive. Preferred equity allows companies to raise permanent capital without diluting common shareholders or facing debt-refinancing risks. It also turns Bitcoin collateral into a yield-generating investment.
In the sector’s most recent funding round, preferred equity was leveraged between 3x and 4.5x, meaning companies held $3 to $4.5 worth of Bitcoin for every $1 of preferred stock issued.
Bitcoin purchases behind Strive’s nine-day streak
Strive has accelerated its Bitcoin acquisitions in recent weeks. The company’s Form 8-K dated August 31 showed that it purchased 1,800 BTC between August 24 and August 28 at an average price of $79,431.
The purchases increased Strive’s total Bitcoin holdings from 21,356 BTC to 23,156 BTC. According to Cryptopolitan, the approximately $143 million acquisition moved Strive into fifth place among the largest publicly listed Bitcoin holders.
Strive’s weekly purchase volume also increased from 20 BTC at the end of July to 1,110 BTC and then 1,800 BTC.
In a research note published on August 31, TD Cowen raised its price target for ASST from $28 to $32. The firm expects Strive to acquire nearly 4,300 BTC during the third quarter.
The 8-K filing also detailed how Strive financed the purchases. Outstanding SATA shares increased from 8.27 million to 9.07 million, while Class A common shares rose from 79.89 million to 83.47 million.
BitcoinTreasuries.NET calculated that the two at-the-market programs raised approximately $154.6 million combined: about $80.3 million through SATA and $74.3 million through common shares. Approximately $143 million of that capital was used to purchase Bitcoin.
Why Strive’s Bitcoin financing flywheel carries risks
The reflexive financing model that drives Strive’s strategy can also work in reverse. Cipolaro warned that the loop:
“can abruptly halt if market confidence falters.” — Greg Cipolaro, NYDIG
Galaxy Research documented drawdowns of more than 98% at Nakamoto, along with steep losses across digital asset treasury equities as premiums turned into discounts.
Cryptopolitan reported that Strive recorded a $257.6 million GAAP net loss in the second quarter. The result included $234 million related to fair-value declines in Bitcoin and Strategy preferred holdings.
For the broader Bitcoin market, the signal is limited but meaningful. Corporate Bitcoin demand is becoming increasingly concentrated among companies that can still access capital markets. Strive’s ability to continue selling SATA and converting the proceeds into Bitcoin offers a clear test of how long this financing flywheel can continue supporting demand.
