Strive and Strategy Take Different Paths in Bitcoin Buying

In a recent move, Strive, a publicly traded company, acquired 1,375 Bitcoin for approximately $109 million, lifting its total holdings to 24,531 BTC. This purchase was made between August 31 and September 4, 2026, with an average price of $79,281 per coin. On the other hand, Strategy, another publicly traded company, did not buy any Bitcoin during the same period but instead spent $176.3 million buying back its own preferred stock.

Variable-Rate Perpetual Preferred Stock: A Key Factor

Both Strive and Strategy use variable-rate perpetual preferred stock to fund their Bitcoin strategies. This type of equity has no maturity date, a floating dividend, and a claim that ranks above common stock. However, the same funding model is pushing the two companies in opposite directions. Strive's SATA pays cash dividends every business day, starting from June 16, 2026, at an annualized rate of 13.00%. This has allowed Strive to raise capital through SATA and continue buying Bitcoin without relying heavily on common-stock sales.

Strategy's Approach: Buying Back Preferred Stock

Strategy, on the other hand, has taken a different approach. The company has authorized up to $2.0 billion for its Digital Credit Securities Repurchase Program, allowing it to buy STRC when it trades below its $100 par value. Strategy has already repurchased $25.0 million of STRC in late July at an average 13.47% discount to par. The buybacks have since picked up, with Strategy purchasing 1,810,885 STRC shares for $176.3 million between August 31 and September 7, or roughly $97 per share.

Why the Difference in Approach?

The reason behind Strategy's approach is to reduce its future preferred dividend requirements at a discount. By buying back STRC below par, Strategy is reducing the amount of preferred stock outstanding and the dividends it will have to pay on those shares. At the same time, buying back STRC below par makes issuing new shares less attractive, which helps explain why Strategy spent $176.3 million on buybacks and doubled its repurchase authorization instead of raising fresh capital for another Bitcoin purchase.

Impact on Shareholders

Both moves can benefit shareholders, but they leave the two companies with very different funding positions. Strive needs to keep issuing SATA at its 13% coupon, while Strategy needs to decide when to resume Bitcoin purchases. STRC needs to move back toward its $100 par value, and SATA needs to keep trading around par as its notional value moves past $1 billion. If SATA keeps helping Strive raise money while STRC stays below $100, the gap between Strive's Bitcoin buying and Strategy's pause could widen to more than a week.

What's Next?

The two companies are taking very different approaches to buying and funding Bitcoin. Strive is continuing to raise capital through SATA, while Strategy is focusing on buying back its preferred stock. As the market continues to evolve, it will be interesting to see how these two companies adapt and respond to the changing landscape. One thing is certain: the gap between Strive's Bitcoin buying and Strategy's pause could continue to widen, providing a unique opportunity for investors to observe the different approaches of these two companies.

Recent Performance

The two stocks have moved very differently over the past year, even though both are closely tied to Bitcoin's performance. Strive has delivered the stronger recent run, gaining 116.82% over the past month and 183.76% over six months, while Strategy gained 34.90% over one month and remains down 6.74% over six months. Both are still deeply below their levels from a year ago, with Strive down 75.41% and Strategy down 59.37%. Bitcoin has gained 21.88% over the past 30 days but remains down 29.48% over 12 months.

Conclusion

In conclusion, Strive and Strategy are taking different paths in their Bitcoin buying strategies. While Strive is continuing to raise capital through SATA, Strategy is focusing on buying back its preferred stock. The gap between these two approaches could continue to widen, providing a unique opportunity for investors to observe the different approaches of these two companies. As the market continues to evolve, it will be interesting to see how these two companies adapt and respond to the changing landscape.