Strive preferred stock price breaks through par value, expanding Bitcoin financing channels

Bitcoin-holding company Strive’s perpetual preferred stock SATA traded above $100 in par value last week. This is not just a simple increase in stock price, but a significant signal that the company can raise funds to purchase additional Bitcoin. With the current BTC price hovering around $84,170, Stlive has secured a new funding channel through its market price (ATM) sales channel by achieving this par value.

SATA Perpetual Preferred Shares, Significance of Achieving $100 Par Value

Stlive’s SATA is a perpetual preferred stock that offers a 12% dividend, with a real return of 12.2%. The above-par value trading on Friday means that investors are evaluating this preferred stock as an attractive profit opportunity. The company currently has 12,797 BTC on its balance sheet, with a common share price of $0.94.

The reason why achieving par value is important is that it is a legal threshold for a company to issue additional shares. Preferred shares traded above par value reflect confidence in the market, and based on this, the company can raise more capital to continue buying Bitcoin.

$755M trading volume $582M is above par value, fundraising is in full swing

STRC, a preferred stock of Strategy (MSTR), which has a similar structure to Stlive, is showing the same trend. Last week, STRC recorded a total trading volume of $755 million, with $582 million coming at a price range above par. According to Bitcoin Quant data, this is the highest trading volume recorded above its face value on a weekly basis.

This trading activity means that financing through preferred shares is in full swing. With the concentration of transactions above face value, it is estimated that approximately 2,636 BTC will be secured through the ATM program. This is proof that the innovative funding methods of Bitcoin-holding companies are being recognized by the market.

Same structure as Strategy STRC, secure additional BTC with ATM program

SATA is designed to be very similar to Strategy’s STRC. When both preferred shares are traded above par value, the company can proceed with additional issuance through the market, and the funds raised through this can purchase Bitcoin. Strategy reached par value earlier this month and maintained that level last week.

This is a sign that both institutional and individual investors recognize the preferred shares of Bitcoin-holding companies as a stable source of income. As the par value reference point is maintained, companies have secured a structure that can continue to raise funds.

Chairman Saylor: “Achieving par value is a big sign”

On Friday, Strategy’s chairman, Michael Saylor, mentioned in an X post that STRC and SATA have reached their face value. His comments emphasized the importance of perpetual preferred stock trading above par value. This is not just a fluctuation in stock prices, but is interpreted as a phenomenon in which the market recognizes the effectiveness of Bitcoin accumulation strategies.

Preferred shares that exceed par value become a means of capital formation for the company to continue to purchase Bitcoin, and from the investor’s point of view, it becomes an investment product that can expect stable dividend returns. In the current market environment, this financing model for Bitcoin-holding companies is recognized as a new route that differs from traditional financial financing methods.