Bitcoin treasuries hold 1.3M BTC as Bitfinex flags funding risk

Bitcoin treasury companies have accumulated 1.3 million BTC across 180 listed firms, with Bitfinex questioning whether investor demand for discounted preferred shares could weaken the financing behind further purchases.

Summary

• Strategy holds 848,517 BTC, representing roughly two-thirds of the corporate total cited by Bitfinex.
• STRC closed at $99.34 on Oct. 29, just below its $100 stated value.
• Strive purchased 6,182 BTC during Oct. 17--23, bringing its holdings to 43,000 BTC.
• Strategy's approved dividend changes include daily record dates, with weekend payments grouped under settlement rules.

Bitfinex's Oct. 30 analysis examines how Strategy and Strive are using preferred shares to finance Bitcoin purchases while trying to keep those securities attractive to income investors.

The exchange cites industry tracker SatsIntel's count of 180 listed Bitcoin holders, whose combined holdings represent approximately 6.2% of Bitcoin's eventual 21 million supply. Strategy accounts for 848,517 coins, leaving its treasury far larger than those of other listed buyers.

Its central concern is the relationship between preferred-share prices and continued fundraising. According to the analysis, discounts demanded by investors could interrupt the financing cycle and leave companies facing pressure to sell Bitcoin to meet dividend payments.

Strategy seeks steadier STRC trading through daily dividends

Strategy shareholders approved amendments permitting daily dividends at an Oct. 28 special meeting, according to the company's Form 8-K.

The filing sets Nov. 1 as the effective date for STRC's new schedule, subject to the amended certificates being filed and becoming effective. STRF, STRK and STRD are scheduled to follow on Jan. 1, 2027.

Bitfinex reports that STRC closed at $99.34 on Oct. 29. The security had fallen to $71.25 in June and traded in the $90s from August, after remaining below its $100 stated value since May.

Strategy expects more frequent distributions to reduce price swings associated with dividend dates. In remarks reproduced by Bitfinex, CEO Phong Le said STRC previously experienced a roughly 49-basis-point decline around its monthly ex-dividend date. After payments became twice monthly, the corresponding decline was around 36 basis points.

Le said moving to daily distributions could bring volatility down further. The change concerns payment timing, without itself raising the dividend amount, according to the exchange's explanation.

Strive combines preferred shares with fresh Bitcoin purchases

Strive began daily payments on its SATA preferred stock on June 16, according to Bitfinex, putting the Dallas-based treasury company ahead of Strategy on dividend frequency.

The report describes SATA as a senior preferred security carrying a variable dividend, then at 13%, and targeting a $100 value. Its junior preferred, SATS, carries a fixed 15% annual dividend.

In a liquidation, creditors rank ahead of preferred shareholders. Bitfinex explains that SATA holders rank ahead of SATS holders, while common shareholders sit behind both preferred classes.

Strive sold 7 million SATS shares at $90 each in October, raising approximately $630 million, the analysis states. Although each share has a $100 face value and a $15 annual dividend, the offering price was below that face value.

The report distinguishes an initial offering discount from evidence of financial distress, noting that Strategy originally launched STRC at $90 as well.

Strive's Oct. 26 SEC filing records a purchase of 6,182 BTC between Oct. 17 and Oct. 23 at an average price of $82,732, including fees and expenses. Its holdings rose from 36,818 BTC to 43,000 BTC.

The same filing shows cash and cash equivalents of $504.4 million on Oct. 23, up from $317.5 million a week earlier. Strive held 505,000 STRC shares, valued at approximately $50.2 million.

Daily dividends still follow Nasdaq settlement rules

Strategy's filing provides a practical distinction for U.S. investors between daily dividend record dates and the dates cash reaches their accounts.

The proposed schedule establishes a record date every calendar day, including weekends and holidays. For shares cleared through the Depository Trust Company, however, record dates falling on nonbusiness days are treated as occurring on the preceding eligible day.

Strategy gives the example of dividends for Friday, Nov. 6, through Sunday, Nov. 8. All three would share a Friday record date and ex-dividend date, with payment grouped on Monday, Nov. 9.

Under the T+1 settlement cycle, Strategy expects someone buying on that Friday to miss all three dividends, while someone selling that day would retain entitlement to them.

The filing states that treatment can differ for shares cleared outside DTC, traded on other venues, or held through brokers with different procedures.