Strategy and Strive drive June Bitcoin purchases with 6,989 BTC from preferred equity proceeds

Two of the most aggressive corporate Bitcoin buyers just had a very busy June. Strategy Inc. and Strive Inc. collectively added 6,989 BTC to their treasuries, funded almost entirely through preferred equity instruments rather than traditional stock sales or debt offerings.

Strategy picked up 3,625 BTC on a net basis, while Strive added 3,364 BTC. Each company deployed approximately $200 million raised from their respective preferred equity products: STRC for Strategy and SATA for Strive.

The preferred equity playbook

Neither company went the conventional route of issuing new common shares or tapping revolving credit lines. Instead, both relied on preferred equity instruments designed to trade near $100 par value with effective yields ranging from 11% to 13% or higher.

For Strategy, the STRC instrument has become the primary engine for Bitcoin accumulation. The company did sell 32 BTC during the month to cover STRC dividend obligations, which is why the net figure comes in at 3,625 rather than the gross amount purchased.

Strive’s approach was even more front-loaded. The company’s largest single transaction in June was a 2,500 BTC purchase funded almost entirely through SATA proceeds. That single buy accounted for roughly three-quarters of Strive’s monthly total.

The running scoreboard

Strategy’s total Bitcoin holdings now exceed 845,000 BTC as of early June, roughly 4% of all Bitcoin that will ever exist. Strive, meanwhile, has climbed to nearly 20,000 BTC.

Both companies were buying during a period when Bitcoin prices fluctuated between roughly $60,000 and $65,000. At those levels, each company’s $200 million deployment bought somewhere around 3,000 to 3,500 BTC, which lines up neatly with the reported figures.

The combined haul of nearly 7,000 BTC represents meaningful demand at a time when Bitcoin’s supply dynamics continue to tighten following the April 2024 halving event. Miners now produce roughly 450 BTC per day, meaning Strategy and Strive alone absorbed the equivalent of about 15 days’ worth of new Bitcoin supply in a single month.

Why preferred equity changes the game

The 11% to 13% yields on these instruments aren’t trivial, but they’re manageable as long as Bitcoin’s price trajectory cooperates. If Bitcoin appreciates faster than the cost of the preferred dividends, the companies are effectively borrowing at a negative real rate to accumulate a scarce asset.

Strategy’s small 32 BTC sale to cover STRC dividends hints at this dynamic. The company is already using its Bitcoin stash to service the preferred equity, creating a direct link between the treasury’s size and its ability to sustain the financing mechanism.

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