Matt Cole, CEO of Bitcoin treasury company Strive, posted a chart of the company’s holdings on social media today, saying that Bitcoin is cheap right now, the company wants to buy more, and hinting that it will disclose new accumulation figures next week.
He laid out plainly how the company is turning this pullback into an opportunity. It isn’t issuing debt or using the coins it holds as collateral; instead, it raises funds by issuing preferred shares and uses the proceeds to buy Bitcoin. Its accumulation ratio rose from 30% at the end of last year to 55% at the end of September, and now exceeds 70%. As of November 6, it held 43,153 Bitcoin, having added just 29 the week before.
There’s a cost to achieving that ratio. Dividends on the preferred shares accrue annually, and any unpaid amounts roll over, putting the pressure on the dividend ledger rather than the share price.
Two things are really worth watching: whether the amount of Bitcoin backing each share is increasing, and how long this dividend arrangement can hold up. Next week’s disclosure will provide some of the answers.
He laid out plainly how the company is turning this pullback into an opportunity. It isn’t issuing debt or using the coins it holds as collateral; instead, it raises funds by issuing preferred shares and uses the proceeds to buy Bitcoin. Its accumulation ratio rose from 30% at the end of last year to 55% at the end of September, and now exceeds 70%. As of November 6, it held 43,153 Bitcoin, having added just 29 the week before.
There’s a cost to achieving that ratio. Dividends on the preferred shares accrue annually, and any unpaid amounts roll over, putting the pressure on the dividend ledger rather than the share price.
Two things are really worth watching: whether the amount of Bitcoin backing each share is increasing, and how long this dividend arrangement can hold up. Next week’s disclosure will provide some of the answers.
