A Billion Dollar Bitcoin Buy: Strive Running While Michael Saylor's Strategy Is Stalling

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The analysis compares Strive and Strategy Inc., focusing on their preferred stock offerings and Bitcoin holdings. Strategy's preferred stocks (STRD and STRK) are currently analyzed in terms of their yields and pricing, with Strategy's STRD trading at $69.85 offering a 14.32% yield and STRK trading at $70.10. Strategy's overall approach to Bitcoin acquisition is contrasted with Strive's, highlighting Strategy's significantly larger Bitcoin holdings ($68B vs. $3.4B for Strive) and preferred stock value ($12.5B vs. $2.1B for Strive). A key point is that a new $1 billion investment would move Strive's preferred stock price by approximately 29 points, while Strategy's would only move by about 1.5 points, indicating Strive's higher sensitivity to new capital. Strategy's fixed-rate preferred stock (SATS) is noted to be junior to STRK and STRD, with a policy of not issuing new SATS below $100. Strive's strategy, as per Matt Cole, CEO, is to buy Bitcoin while it's under $100,000, leveraging its current holdings. The analysis points out that Strategy's preferred stocks are notionally superior to Bitcoin, with higher yields, but the decision to buy Bitcoin is influenced by the potential for greater appreciation and the ability to leverage capital more effectively than in preferred stock offerings.

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