Strive Faces Limits to Its Bitcoin Funding Model
Photo: Cointribune
Strive’s SATA program reportedly generated about 55 million dollars this week, enough to buy nearly 638 bitcoins. But this financing capacity depends directly on the preferred stock price. From Wednesday, the stock fell below 100 dollars, preventing the company from continuing its issuances. A limit that recalls the risks of the Strategy-inspired model. The mechanism relies on a simple logic. Strive, which held 27,462 bitcoins at the end of September , gradually sells SATA preferred shares as part of an “at-the-market” (ATM) program. The company then uses the funds raised to strengthen its bitcoin reserve.
Source: Cointribune
