Strive’s SATA preferred shares have recovered nearly 16% from their June low at around $97, prompting January 3 CEO Samson Mow to predict that the rebound could help Strategy’s STRC return to its par value of $100.
Summary
- Strive’s SATA has rebounded nearly 16% from its June low of around $97.
- Samson Mow expects SATA’s recovery to help Strategy’s STRC return to its par value of $100.
- Three major U.S. preferred stock ETFs collectively hold STRCs worth $756 million.
Data from Yahoo Finance shows that SATA has risen from $83.30 and is now trading around 3% of the level it was designed for. The rally has erased most of the slide in preferred shares at the end of June, while STRC remains about 13% below par despite increased demand from major U.S. exchange-traded funds.
According to Mow, steps taken by Bitcoin treasury companies to improve their balance sheets and support their preferred shares have started to restore confidence in the products. He told Cointelegraph that SATA’s return to $100 could reassure investors that the funding structure used by Strive and Strategy remains functional.
“I think every action Strategy has taken to strengthen its balance sheet and encourage STRC to return to par is also working.”
Mow expects the two stocks to move together because investors evaluate whether Bitcoin-related preferred stocks can continue to fund their dividends and stay close to their stated values.
“But it’s all working in tandem. I think as SATA comes back to the normal level, you’ll also see STRC come back to the even level, because people are saying, ‘OK, this model isn’t broken’. Everyone is capitalized for three or more years of dividend payments…there was no reason to panic all along,” he added.
SATA Recovery Supports Confidence in Bitcoin Preferred Stock
Striving to introduce SATA in November 2025 to raise funds to expand its Bitcoin holdings without issuing more common stock. Floating-rate perpetual preferred stocks use dividend adjustments to encourage trading around their $100 par value.
By changing the payment rate as necessary, Strive can make SATA more or less attractive to investors as its market price changes. The company designed the structure to provide recurring access to capital while limiting dilution to common shareholders, consistent with its stated cash flow strategy.
The strategy launched STRC in 2025 following a similar model. The preferred stock also uses a variable dividend to keep its price near $100, putting it in a category that Strategy calls “digital credit.”
During the late June sell-off, both products fell well below their predicted levels. SATA has since recovered to around $97, but data from Yahoo Finance shows STRC closed at $86.89 on July 24 after gaining 2.29% during the session. It then rose to $87.14 after hours.
Mow views the difference between their recoveries as temporary rather than evidence that the STRC structure has failed. His forecast is based on investors viewing SATA’s rebound as proof that preferred stocks backed by Bitcoin cash companies can recover after a sharp decline.
Along with the price recovery, Mow pointed out that companies are refining how they raise capital and manage their Bitcoin holdings. He cited Lyn Alden’s Orange Juice treasury company, launched July 15, as an example of a new entrant using a different operating model and starting with a lower Bitcoin acquisition cost.
BitcoinTreasuries lists Strategy 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.
These holdings create different levels of exposure to Bitcoin, but both companies rely on capital market products to support their cash flow plans. For Strive, SATA provides a way to raise new funds without selling more common stock, while Strategy uses STRC and other securities to fund additional Bitcoin purchases.
ETF demand strengthens STRC despite its discount
Institutional demand has already put STRC at the top of three major U.S. preferred stock ETFs, although the stock continues to trade well below average.
Michael Saylor, co-founder and executive chairman of Strategy, revealed 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 in STRC. Their portfolios also contain preferred stocks issued by established U.S. companies, providing ETF investors with indirect exposure to Strategy’s Bitcoin-related securities alongside traditional income products.
In his article The holdings show that asset managers allocated significant capital to STRC, although its July 24 closing price remained 13.11% lower at $100.
The STRC discount is important to Strategy because the company is selling the preferred shares to fund Bitcoin purchases. The strategy can issue shares near or above par value and direct the proceeds into Bitcoin, but a significant discount reduces the amount of capital it can raise from each newly issued share.
Selling more STRC while it is trading around $87 would therefore produce less funding per share than an issue done at close to $100. The drop in price could weaken the economics of using security for Bitcoin accumulation, even if existing demand for ETFs continues.
Mow’s outlook associates the recovery of SATA with a possible improvement in these conditions. If investors interpret Strive’s move back toward par as evidence that floating-rate Bitcoin preferreds can stabilize, his view suggests that STRC could attract enough demand to reduce its discount and restore a more efficient funding channel for the strategy.
