Strive’s SATA preferred shares have gained about 16% since their June lows to around $97, prompting Jan3 CEO Samson Mow to predict that a reversal could help Strategy’s STRC return to its $100 value.
Summary
- Strive’s SATA has rebounded about 16% from its June low to around $97.
- Samson Mow expects SATA’s recovery to help Strategy’s STRC return to its $100 value.
- The three largest US preferred stock ETFs collectively hold $756 million worth of STRC.
Yahoo Finance data shows that SATA has rallied from $83.30 and is now trading at about 3% of the level it is designed to follow. The recovery erased most of the decline in the preferred stock in late June, while STRC remains about 13% below average despite receiving increased demand from major US exchange-traded funds.
According to Mow, steps taken by Bitcoin treasury companies to improve their balance sheets and support their preferred stocks have begun to rebuild confidence in the products. He told Cointelegraph that SATA’s return to $100 would reassure investors that the financial structure used by Strive and Strategy remains viable.
“I think all the actions Strategy has taken to strengthen its balance sheet and encourage STRC to get back on track are also working.”
Mow expects the two securities to go hand-in-hand as investors assess whether Bitcoin-linked preferred stocks can continue to support their dividends and hold on to their stated values.
“But everything works in parallel. I think that as SATA comes back to standard, you’re going to see STRC come back to standard again, because people say, ‘Okay, this model isn’t broken.’ Everyone gets paid three or more years of dividend payments… there was no reason to panic all the time,” he added.
SATA’s recovery supports confidence in Bitcoin’s preferred stocks
Strive to launch SATA in November 2025 to raise funds to increase Bitcoin holdings without issuing the most common stock. Variable-rate preferred shares use dividend changes to encourage trading at their $100 par value.
By changing the payment rate when needed, Strive can make SATA more attractive to investors as the market price moves. The company designed the structure to provide recurring access to capital while minimizing dilution to common shareholders, according to its stated treasury strategy.
The strategy launched STRC by 2025 under the same model. The popular stock also uses a variable dividend to keep its price close to $100, placing it in a category Strategy calls “digital credit.”
During the late June selloff, both products fell below their target levels. SATA has recovered to around $97, but Yahoo Finance data shows that STRC closed at $86.89 on July 24 after gaining 2.29% during the session. It later rose to $87.14 in after-hours trading.
Mow views the discrepancy between their findings as temporary rather than evidence that the STRC framework has failed. His prediction hinges on investors treating SATA’s rebound as evidence that the preferred stocks backed by Bitcoin treasury companies can recover after a major decline.
Alongside the price recovery, Mow pointed to companies adjusting the way they raise money and manage their Bitcoin holdings. He cited Lyn Alden’s financial company Orange Juice, which launched on July 15, as an example of a new entrant using a different operating model and starting with a low cost of acquiring Bitcoin.
BitcoinTreasuries ranks Isu as the largest corporate Bitcoin holder, with 843,775 BTC. Strive holds 19,921 BTC, placing it seventh among public companies tracked by the platform.
Those holdings create different levels of exposure to Bitcoin, but both companies rely on money market products to support their wealth plans. In Strive, SATA provides a path to new capital without selling common shares, while Strategy uses STRC and other securities to fund additional Bitcoin purchases.
ETF demand strengthens STRC despite its discount
Institutional demand has already placed STRC at the top of the three largest popular US ETFs, although the security continues to trade below average.
Michael Saylor, founder and executive chairman of Strategy, disclosed on July 24 that STRC is now the largest holding in BlackRock’s iShares Preferred and Income Securities ETF, Virtus InfraCap’s US Preferred Stock ETF and VanEck’s Preferred Securities ex Financials ETF.
According to figures shared by Saylor, the three funds collectively hold $756 million of STRC. Their portfolios also contain preferred stocks issued by established US companies, giving ETF investors indirect exposure to the security linked to the Strategy’s Bitcoin and traditional income products.
In his X post, Saylor presented ETF positions as evidence that Strategy’s “digital debt” securities are entering institutional portfolios. Holdings indicate that asset managers have allocated large amounts of capital to STRC, although its July 24 closing price remained 13.11% below $100.
STRC’s discount is important to Strategy because the company is selling preferred shares to finance Bitcoin purchases. The strategy can issue a stock near or above par and direct the proceeds to Bitcoin, but a large discount reduces the amount of money it can raise from each newly issued share.
Selling more STRC while trading at around $87 will therefore generate less funding per share than an issue completed near $100. A lower price would weaken the economics of using the safety of Bitcoin hoarding, even if existing demand for ETFs continues.
Mow’s theory links SATA recovery to possible improvement in those conditions. If investors interpret Strive’s return to equity as evidence that Bitcoin’s preferred volatile stocks can sustain, his opinion suggests that STRC could attract enough demand to lower its discount and restore the Strategy’s most efficient funding channel.
