Strive holders exercise $208 million in warrants as BTC treasury grows to 32,773

Holders of Strive’s traditional warrants exercised $208 million worth ahead of the scheduled 5 p.m. ET expiry on Tuesday, according to CEO Matt Cole. Cole stated that approximately 15.3 million warrants remained unexercised at the time of his announcement. This figure aligns with the number of shares underlying the outstanding warrants disclosed in a recent company filing.

Warrant exercises and BTC accumulation

Strive, a Nasdaq-listed company known for its large-scale bitcoin holdings, revealed that it acquired 3,311 BTC between October 5 and October 9 at an average price of $84,500 per coin, inclusive of fees. The company’s total bitcoin stash increased from 29,462 BTC as of October 2 to 32,773 BTC by the following week. Meanwhile, Strive’s cash and cash equivalents rose to about $310.3 million during the same period.

A company filing dated October 13 reported a decrease of 7,993,806 in the number of shares underlying Strive’s traditional warrants, bringing the total to 15,255,900 by October 9. To exercise a warrant, holders must pay the exercise price to Strive, which results in the issuance of additional Class A shares. During that week, the number of Class A shares outstanding rose by approximately 9.46 million, a count that includes shares sold through 4 p.m. and those issued on the next business day.

Neither the filing nor Cole’s update clarified the exact timeline over which the $208 million in exercises occurred, and the company had not published a final tally as of the latest communication. Cole stated,

“$208M in warrants exercised; ~15.3M remain, expiring today at 5pm ET.”

Back in September, Cole mentioned on a podcast that over $700 million in warrants were set to expire in mid-October and suggested that proceeds from exercised warrants could be used to purchase more bitcoin. As of August 28, Strive reported holdings of 23,156 BTC.

Mini dictionary: Strive is a company listed on the Nasdaq that focuses on maintaining substantial bitcoin reserves as part of its corporate treasury strategy.

SATA amendment and dividend policy

In a separate regulatory filing, Strive disclosed that it had amended the terms governing its Variable Rate Series A Perpetual Preferred Stock (SATA) with the Nevada Secretary of State. The amendment prevents the company from issuing new SATA shares below $100, before considering discounts and fees. This measure is intended to formalize Strive’s previously communicated policy of not selling below $100, making it a binding restriction within the stock’s governing documents.

Cole described the change as

“a binding restriction in governing docs, formalizing the protection.”

Additionally, the amendment redefined a “business day” to include weekends, which allows for the possibility of daily SATA dividend payments on Saturdays and Sundays if approved by the New York Fed, Nasdaq, and the Depository Trust Company. Despite this change, Strive indicated it does not anticipate altering its near-term dividend schedule.

The board set SATA’s annual dividend rate at 13.00% for periods beginning November 1 and announced a daily cash dividend of $0.0571 per share for each of November’s 19 business days. The number of SATA shares outstanding increased by 532,094 over the week, reaching 14,030,176 as of October 9.