Strive just showed what the SATA flywheel is supposed to do. After the preferred returned to its $100 par value, the company issued another 441,313 SATA shares and 3,646,300 common shares, then bought 1,110 bitcoin for about $81.5 million at an average price of $73,409. Its bitcoin holdings rose to 21,356. SATA trading at par matters because the ATM can issue fresh preferred shares without giving the market a discount, turning investor demand into more bitcoin.
The common issuance deserves equal attention. Strive’s Class A share count increased about 4.8% in one week. The machine works by selling securities and buying bitcoin, and dilution remains one of the inputs. That can still create value when the securities are issued on attractive terms and the bitcoin per share compounds faster than the share count. Investors should understand the machine they are buying.
If all of this sounds complicated, there is a beautifully simple alternative. Sell some stock and buy bitcoin yourself. These treasury companies need preferred shares, ATMs, adjustable dividends, and capital-markets engineering because issuing securities is their edge. You do not. You can own the asset directly and skip the management team, the dilution, and the alphabet soup.
Happy Friday.