Bitcoin treasury companies have accumulated 1.3 million BTC across 180 listed firms, and Bitfinex questions whether demand for discounted preferred shares can keep funding more purchases. Strategy and Strive are both leaning on preferred stock, and Strategy is moving to daily dividends.
Bitfinex says investor discounts on preferred shares could interrupt the financing cycle behind Bitcoin treasury buying and leave companies under pressure to sell Bitcoin to meet dividend payments. The exchange's Oct. 30 analysis looks at how Strategy and Strive use preferred shares to fund purchases while keeping those securities attractive to income investors.
The exchange cites industry tracker SatsIntel's count of 180 listed Bitcoin holders, whose combined holdings represent approximately 6.2% of Bitcoin's eventual 21 million supply. Strategy accounts for 848,517 coins, far more than other listed buyers.
Strategy moves STRC to daily dividends
Strategy shareholders approved amendments permitting daily dividends at an Oct. 28 special meeting, according to the company's Form 8-K. The filing sets Nov. 1 as the effective date for STRC's new schedule, while STRF, STRK and STRD are scheduled to follow on Jan. 1, 2027.
STRC closed at $99.34 on Oct. 29, according to Bitfinex. It had fallen to $71.25 in June and traded in the $90s from August, after remaining below its $100 stated value since May.
Strategy expects more frequent payouts to reduce price swings around dividend dates. CEO Phong Le said STRC previously fell roughly 49 basis points around its monthly ex-dividend date, and the decline was around 36 basis points after payments became twice monthly. Le said moving to daily distributions could bring volatility down further. According to the exchange's explanation, the change concerns payment timing without itself raising the dividend amount.
Strive pairs preferred stock with Bitcoin buying
Strive began daily payments on its SATA preferred stock on June 16, according to Bitfinex, ahead of Strategy on dividend frequency. Bitfinex describes SATA as a senior preferred security with a variable dividend, then at 13%, while the junior SATS carries a fixed 15% annual dividend.
Strive sold 7 million SATS shares at $90 each in October, raising approximately $630 million, the analysis states. The report distinguishes an initial offering discount from evidence of financial distress, noting that Strategy originally launched STRC at $90 as well.
Strive's Oct. 26 SEC filing records a purchase of 6,182 BTC between Oct. 17 and Oct. 23 at an average price of $82,732, including fees and expenses. Its holdings rose from 36,818 BTC to 43,000 BTC, and cash and cash equivalents stood at $504.4 million on Oct. 23, up from $317.5 million a week earlier.
Record dates follow Nasdaq settlement rules
Strategy's proposed schedule sets a record date every calendar day, including weekends and holidays. For shares cleared through the Depository Trust Company, record dates on nonbusiness days count as the preceding eligible day.
In Strategy's example, dividends for Friday, Nov. 6, through Sunday, Nov. 8, share a Friday record date with payment grouped on Monday, Nov. 9. Under the T+1 settlement cycle, Strategy expects a Friday buyer to miss all three dividends. Treatment can differ for shares cleared outside DTC or held through brokers with different procedures.
Source: crypto.news
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