Bitcoin treasury company Strive added 1,110 Bitcoin to its reserves within a week, but the net benefit to common shareholders was limited due to a rising share count and widening preferred dividend costs.
According to Strive's filing on Aug. 24, the company purchased the Bitcoin between Aug. 17 and Aug. 21 at an average price of approximately $73,409, inclusive of fees and expenses. This acquisition increased Strive's total Bitcoin holdings by 5.48%, moving from 20,246 BTC on Aug. 14 to 21,356 BTC on Aug. 21.
However, effective common shares—defined by Strive as Class A plus Class B stock—grew by 4.24% over the same period, rising from 86,037,123 to 89,683,423 shares. As a result of this share growth, Bitcoin per effective common share increased by just 1.19%, moving from 0.000235317 BTC to about 0.000238127 BTC. On Strive's assumed fully diluted measure, which incorporates options and unvested employee awards but excludes traditional warrants, Bitcoin per share rose slightly higher by 1.34%.
Preferred Stock Costs Expand
Strive's filing also reported 8,270,815 SATA shares outstanding as of Aug. 21, reflecting an increase of 441,313 shares over the week. SATA represents Strive's variable-rate perpetual preferred equity rather than debt, with dividends accumulating on a $100 stated amount per share.
Applying the 13% annualized rate described by Strive as current in its Aug. 10 results, the newly added SATA shares imply approximately $5,737,069 in added annualized preferred dividends. Because the dividend rate is variable, this annualized cost is subject to change if the company adjusts the rate.
Strive's official Bitcoin Yield disclosure does not incorporate this cost, noting that the metric excludes preferred stockholders' senior claims on dividends and assets. Consequently, modest common-share accretion can occur alongside an expanded preferred claim base. Meanwhile, cash and cash equivalents grew by $17.1 million during the week to reach $171.9 million, though the filing does not explicitly link the common-share increase or new SATA shares to the funding of the Bitcoin purchase.
