Strive’s SATA Rebounds, Recovers June Losses to Near Par

Strive’s variable-rate perpetual preferred shares, SATA, have rebounded sharply after hitting a June low of $83.30, rising to around $97 and recovering most of the selloff, according to Yahoo Finance data. The improvement has placed the shares within roughly 3% of their $100 par ...

• Strive's preferred shares (SATA) have recovered significantly from a June low, nearing their $100 par value, indicating market confidence in their par-focused design.
• This strategy of using preferred equity to fund Bitcoin treasuries, adjusting dividends to maintain near-par pricing, is a growing trend among Bitcoin-treasury companies.
• While SATA shows a strong recovery, Strategy's similar product (STRC) still trades below par, highlighting differences in execution and market sentiment among issuers.

Topics: Asset types, Institutional adoption, Yield performance, Equity, Asset manager initiatives, Private credit high yield

Tags: #strive #sata #preferredshares #bitcointreasury #parvalue #dividendrate #strategy #strc #digitalcredit #samsonmow

Read more

Samson Mow says SATA rebound could pull Strategy’s STRC to par

Strive’s SATA preferred shares have recovered nearly 16% from their June low to about $97, prompting Jan3 CEO Samson Mow to predict that the rebound could help Strategy’s STRC return to its $100 par value. Yahoo Finance data show SATA…

• Strive's SATA preferred shares have recovered significantly, prompting predictions that Strategy's STRC could return to its $100 par value.
• The recovery is attributed to actions taken by Bitcoin treasury companies to improve balance sheets and rebuild investor confidence in these financial products.
• Despite a discount, STRC is seeing increased demand from major U.S. preferred stock ETFs, indicating institutional interest in Bitcoin-linked securities.

Topics: Asset types, Institutional adoption, Yield performance, Equity, Asset manager initiatives, Private credit high yield

Tags: #sata #strc #samsonmow #strategy #strive #bitcoin #preferredshares #parvalue #etfs #digitalcredit

Read more

Strive’s SATA Rebounds, Recovers Most of June Drop and Holds Near Par

Strive’s SATA preferred shares have rebounded sharply after a late-June selloff, according to Yahoo Finance. The variable-rate perpetual preferred stock

• Strive's SATA preferred shares have significantly rebounded, recovering from a June low and nearing their $100 par value, indicating a potential stabilization of this 'preferred equity for Bitcoin treasuries' model.
• The performance of SATA and similar products like Strategy's STRC is being closely watched as a test of whether variable dividend mechanisms can maintain share price stability during market volatility.
• Industry figures like Samson Mow suggest that the recovery of SATA and ongoing refinements in Bitcoin treasury management could help restore broader confidence in this emerging class of preferred-share products.

Topics: Asset types, Institutional adoption, Yield performance, Financial instruments, Asset manager initiatives, Treasury bond yields

Tags: #strive #sata #preferredshares #bitcointreasury #parvalue #variabledividend #marketstress #strategy #strc #samsonmow

Read more

Strategy’s STRC tops major ETFs despite trading below $100

Strategy’s STRC preferred stock has become the largest holding in three major U.S. preferred stock ETFs, which collectively own $756 million of the security even as its price remains about 13% below its $100 par value. Michael Saylor, Strategy’s co-founder…

• Strategy's STRC preferred stock has become the largest holding in three major U.S. preferred stock ETFs, despite trading below its $100 par value.
• Institutional ownership of STRC has significantly increased, while retail ownership has decreased, indicating a shift in investor base.
• Strategy plans to issue more STRC and purchase Bitcoin once the stock price returns to $100, a key level for its funding model.

Topics: Asset types, Institutional adoption, Public market, Financial instruments, Asset manager initiatives, Stock equity tokenization

Tags: #strc #preferredstock #etfs #michaelsaylor #blackrock #bitcoin #institutionalownership #digitalcredit #parvalue #dividend

Read more

Strategy’s STRC stabilizes near $85, SATA trades at $97.9 amid Bitcoin pressure

• Strategy's STRC and Strive's SATA, perpetual preferred equity instruments philosophically backed by Bitcoin treasury positions, are trading near $85 and $97.9 respectively.
• Both securities experienced declines in June due to leverage unwinds and falling Bitcoin prices, with SATA shifting to daily dividend payments.
• Investors are considering the yield and potential upside of STRC trading at a discount to par versus the cleaner yield calculation of SATA trading near par.

Topics: Asset types, Institutional adoption, Yield performance, Equity, Asset manager initiatives, Private credit high yield

Tags: #strc #sata #bitcoin #perpetualpreferredequity #treasury #yield #parvalue #dividend #leverageunwind #striveinc

Read more

Is STRC the Next LUNA? Strategy’s Preferred Stock Slides 25% Below Par

TLDR: STRC has dropped to $76.20, approximately 25% below its $100 par value, alarming income-focused investors. Strategy owes $1.2 billion annually in STRC dividends but holds only $1.4 billion in USD reserves currently. Unlike Terra LUNA, Saylor faces no forced liquidation if S...

• MicroStrategy's preferred stock (STRC) has fallen 25% below its $100 par value, raising concerns among income-focused investors.
• While STRC shares similarities to Terra's LUNA in terms of high yield and price depreciation, key structural differences, such as the discretionary nature of dividends, prevent a direct 'depeg' comparison.
• The sustained discount on STRC could impact MicroStrategy's ability to fund its Bitcoin accumulation strategy by potentially weakening demand for its common stock.

Topics: Asset types, Yield performance, Risk default, Bond, Private credit high yield, Credit counterparty risk

Tags: #strc #microstrategy #preferredstock #dividend #parvalue #luna #terra #arkham #yield #bitcoin

Read more

Ali Martinez warns Strategy’s STRC mirrors Terra’s danger loop

Ali Martinez warns Strategy’s STRC preferred stock could create a Terra-like feedback loop as the security trades well below its $100 par value.

• Analyst Ali Martinez warns that Strategy Inc.'s STRC preferred stock could face a Terra-like feedback loop, especially during a prolonged Bitcoin bear market, due to its structure and trading below par value.
• The concern stems from STRC's adjustable dividend rate, which may force Strategy to increase payouts to maintain its par value, potentially raising financing costs as its primary asset (Bitcoin) declines.
• While distinct from Terra's algorithmic model, the comparison highlights a similar economic dynamic where deteriorating conditions could increase issuer obligations, raising liquidity and market confidence concerns.

Topics: Asset types, Risk default, Market cycles macro sensitivity, Equity, Credit counterparty risk, Market volatility liquidity, Interest rate sensitivity

Tags: #alimartinez #strategyinc #strc #terraluna #bitcoin #preferredstock #feedbackloop #parvalue #dividendrate #marketdownturn

Read more

Strategy's investors are may be rotating out of its preferred stock for another crypto rival

Strategy's bitcoin-backed preferred stock remains well below par value as concerns over dividend coverage and stronger competition from Strive's SATA.

• Strategy's bitcoin-backed preferred stock (STRC) is trading significantly below its par value due to concerns over dividend coverage and competition.
• Investors are increasingly favoring Strive's SATA, which offers a higher yield, daily dividends, and a debt-free structure.
• The widening spread between STRC and SATA suggests a potential need for STRC to increase its dividend rate to regain investor demand.

Topics: Asset types, Institutional adoption, Yield performance, Financial instruments, Asset manager initiatives, Treasury bond yields

Tags: #strategyspreferredstock #strivessata #bitcoinbacked #parvalue #dividendcoverage #higheryield #debtfree #convertibledebt #annualizedyield #incomefocusedinvestors

Read more