Strive bought 4,045 BTC between October 12 and 16, lifting its holdings to 36,818 BTC. Warrant exercises raised about $369.2 million, and the company has priced a $630 million preferred stock offering.
Strive, a Nasdaq-listed company that holds Bitcoin as a treasury asset, bought 4,045 BTC between October 12 and 16, according to a regulatory filing published Monday. The purchase lifts its holdings to 36,818 BTC, up from 32,773 a week earlier.
Warrants fund the purchase
The coins cost an average of about $82,803 each, or about $335 million in total.
The cash came from warrants, contracts that let holders buy new shares at a fixed price. On October 12 and 13, investors exercised 273,493,909 warrants for 13,674,703 new Class A shares, raising about $369.2 million. The filing says no traditional warrants remain.
However, the new shares shrink each existing holder's slice of the company unless the new cash earns it back. Class A shares outstanding rose from 101.2 million to 114.8 million in a week, about 13.5%, and Strive ended the week with $317.5 million in cash, up $7.2 million.
A $630 million preferred offering comes next
Strive is not stopping there. On October 15 it priced an upsized offering of 7 million shares of a new 15% Series A Perpetual preferred stock, called SATS, at $90 each, for expected gross proceeds of about $630 million. The offering is scheduled to settle on October 20.
Crypto Briefing reports that the company has earmarked the proceeds for general corporate purposes, with expanded Bitcoin purchases explicitly on the list.
The preferred shares carry a 15% dividend on the $100 stated amount, or $15 a year. Strive plans to park $22.50 per share in a reserve for the first 18 months of dividends.
Strive is not the only treasury company buying. Strategy bought 267 BTC for about $22.1 million last week, bringing its total to 848,517 BTC.
Sources: Decrypt, Crypto Briefing
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