Strive bought 1,110 Bitcoin, but shareholders gained less than 2% real BTC yield

Bitcoin treasury company Strive added 1,110 Bitcoin in a week, but the benefit to common shareholders was much smaller than the headline purchase. After accounting for the company’s rising share count, Bitcoin per effective common share increased just 1.19%. The week also added an estimated $5.74 million in annualized preferred dividends, using the 13% annualized rate Strive described as current on Aug. 10 and SATA’s $100 stated amount.

The company bought the Bitcoin from Aug. 17 through Aug. 21 at an average price of about $73,409, including fees and expenses, according to its Aug. 24 filing. Its holdings rose 5.48%, from 20,246 BTC on Aug. 14 to 21,356 BTC on Aug. 21.

Effective common shares, which Strive defines as Class A plus Class B stock, increased 4.24% over the same period, from 86,037,123 to 89,683,423. That left Bitcoin per effective common share at about 0.000238127 BTC, up from 0.000235317 BTC one week earlier.

The result was slightly better on Strive’s assumed fully diluted measure, with Bitcoin per share rising 1.34%. That measure includes options and unvested employee awards, but excludes 26,596,010 shares underlying traditional warrants under the company’s definition.

Preferred costs widened as Bitcoin per effective common share rose

Strive’s filing also showed 8,270,815 SATA shares outstanding as of Aug. 21, an increase of 441,313 in one week.

SATA is Strive’s variable-rate perpetual preferred equity, not debt. Its dividends accumulate on a $100 stated amount per share. Applying the 13% annualized rate that Strive described as current in its Aug. 10 results, the additional shares imply $5,737,069 in added annualized preferred dividends.

The estimate is not a fixed coupon or a report of cash paid during the week. The dividend rate is variable, so the annualized cost will change if Strive adjusts it.

Strive’s own Bitcoin Yield disclosure leaves this cost outside the metric. The company says 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.

Cash and cash equivalents also rose by $17.1 million during the week, reaching $171.9 million. However, the filing does not say that either the common-share increase or the new SATA shares financed the Bitcoin purchase, so the simultaneous changes should not be treated as proof of a funding link.

The 1.19% increase marks a modest reversal from CryptoSlate’s July 29 and Aug. 5 snapshots, when Strive’s Bitcoin per effective common share slipped. This time the Bitcoin purchase outran common-share growth, but only narrowly, and the preferred payout base expanded alongside it.

The post Strive bought 1,110 Bitcoin, but shareholders gained less than 2% real BTC yield appeared first on CryptoSlate.