Strive added 1,110 Bitcoin between Aug. 17 and Aug. 21, increasing its holdings 5.48% to 21,356 BTC. Yet the benefit to common shareholders was substantially smaller than the headline acquisition suggested, according to filings reviewed by CryptoSlate.
The company’s effective common share count rose 4.24% simultaneously, climbing from 86,037,123 shares on Aug. 14 to 89,683,423 shares by Aug. 21. That dilution compressed Bitcoin per effective common share gains to just 1.19%, versus the 5.48% headline increase in total holdings.
Strive purchased the Bitcoin at an average price of approximately $73,409 per coin, including fees and expenses. The purchase came on the heels of the company’s Aug. 10 disclosure of a 13% annualized preferred dividend rate on its SATA preferred equity.
Preferred Claims Limit Common Accretion
The gap between headline and per-share gains reflects Strive’s capital structure. The company issued 441,313 new SATA shares during the week, bringing total SATA shares outstanding to 8,270,815 as of Aug. 21. At the $100 stated amount per share and 13% annual dividend rate, the new SATA shares carry an annualized preferred dividend obligation of $5.74 million.
Strive does not specify whether the new preferred shares or other sources financed the Bitcoin purchase. Cash and cash equivalents rose $17.1 million during the week, reaching $171.9 million as of Aug. 21.
“Bitcoin Yield does not account for preferred stockholders’ senior claims on dividends and assets, meaning modest common-share accretion can arrive alongside a larger preferred claim base,” Strive stated in its disclosure.
Bitcoin per effective common share rose to 0.000238127 BTC from 0.000235317 BTC one week prior. On a fully diluted basis, which includes options and unvested employee awards but excludes 26,596,010 shares underlying traditional warrants, the increase was 1.34%.
Strive filed the Bitcoin purchase disclosure on Aug. 24. The company defines effective common shares as Class A plus Class B stock. The preferred dividend rate is variable and subject to adjustment by Strive.
