Strive buys 124 bitcoin for $10 million, SATS shares outstanding rise

Strive, a Nasdaq-listed company active in corporate treasury management, disclosed the purchase of 124 bitcoin between October 24 and October 30 at an average acquisition cost of approximately $80,526 per coin, including all related fees and expenses. This purchase was detailed in the company’s 8-K filing submitted on November 2.

Bitcoin treasury growth and funding sources

With this latest acquisition, Strive’s total bitcoin holdings now stand at 43,124 BTC. The 124 bitcoin added last week represent around 2% of the 6,182 BTC Strive acquired during the previous week, from October 17 to October 23. The most recent purchase, valued close to $10 million, aligns with information previously shared by CEO Matt Cole on X.

In the same social media post, Cole explained that the company primarily used existing cash to finance these bitcoin acquisitions. As of October 30, Strive reported $490.4 million in cash and cash equivalents, reflecting a decrease of $14 million from the prior week’s $504.4 million. The company’s regulatory filing did not specify the reasons for this reduction.

Most of the recent bitcoin purchases came from existing cash, as shown by a week-over-week cash balance drop of $14 million, according to CEO Matt Cole.

SATS at-the-market program and shares activity

Additionally, Cole revealed that Strive sold shares for the first time through its SATS at-the-market (ATM) program during the reported period. SATS refers to Strive’s Series A Perpetual Preferred Stock, which the company is offering incrementally at prevailing market prices. Cole indicated that all weekly proceeds from the ATM were derived from SATS share sales, but neither he nor the filing disclosed the exact amount raised.

According to the 8-K, the number of SATS shares outstanding increased by 3,418 during the week, bringing the total to 7,003,418 from the prior 7,000,000. The broader SATS ATM program was set in motion with a filing on October 26, authorizing the sale of up to $1 billion of the preferred stock over time.

Mini dictionary: SATS at-the-market program — This is a capital-raising mechanism that enables companies to sell shares of preferred stock, such as Strive’s SATS Series A, directly into the open market at current trading prices. Such programs provide flexibility in raising funds compared to traditional offerings, as shares are sold over time based on market demand.

Holdings and other securities

In addition to bitcoin, Strive continues to hold 505,000 shares of Strategy’s STRC preferred stock. These shares were valued at $50.1 million as of October 30, a slight decrease from $50.2 million one week earlier. The amount of variable-rate SATA preferred shares outstanding was unchanged at 14,030,176, while fully diluted common shares held steady at 130,044,690.

Class A common stock saw a modest increase, rising by 3,976 shares to 118,117,620. Conversely, Class B common shares declined by 1,213 shares during the same reporting period.

The company’s SATS ATM program provides flexibility for raising capital over time, while continued bitcoin acquisitions boost Strive’s growing treasury reserves.