Asset management company Strive Asset Management has put $50 million of its corporate treasury into Strategy’s preferred stock, STRC, which is linked to its Bitcoin-focused treasury strategy and offers a variable dividend.
The investment, which accounts for almost one-third of Strive’s treasury reserves, illustrates the growing interest of institutions in Bitcoin-related yield-generating instruments.
The company claims that while retaining liquidity, vehicles like STRC may offer higher returns than conventional cash holdings or money market funds.
Currently yielding roughly 11.5%, STRC is listed on the Nasdaq and provides a variable dividend. With a daily trading volume of over $90 million and a market capitalisation of roughly $3.85 billion, the asset trades for about $100 per share.
Strive has joined an increasing number of businesses that have added security to their balance sheets by allocating funds to STRC. As part of larger Bitcoin treasury plans, companies like Prevalon Energy, Anchorage Digital, and Oranjebtc have already made investments in the product.
According to Matt Cole, CEO of Strive, many institutions keep sizeable US dollar reserves to cover operating and dividend requirements. He clarified that allocating a portion of such reserves to securities like STRC may result in greater yields without compromising liquidity.
According to data from BitcoinTreasuries.NET, Strive has 13,311 Bitcoin, making it the eleventh-largest corporate Bitcoin treasury. Additionally, the business has introduced SATA, a variable-rate perpetual preferred stock that is intended to provide returns based on the company’s increase in Bitcoin per share.
You need to login in order to Like
Leave a comment