Bitcoin Treasury Financing Models Under Pressure as Strategy, Strive Shift to High-Yield Preferred Shares to Compete for Investors

On Oct. 21, according to Bloomberg, as the financing models for Bitcoin treasury companies Strategy and Strive come under pressure, these firms are attracting investors by offering higher-yielding preferred shares to sustain their strategies of accumulating cryptocurrency.

Bitcoin treasury company Strive completed a $630 million preferred stock issuance on Tuesday, raising approximately 25% more than initially planned. The preferred shares feature a nominal annualized yield of 15% and were issued at a discount, resulting in an effective yield of nearly 17%, well above the yield on one-year U.S. high-rated Treasury bonds and approaching yields typical of distressed debt.

Meanwhile, Strategy’s financing model also faces challenges. Its STRC preferred shares, which carry an annual dividend rate of 12%, have not seen new issuances since price declines in June. The company is currently pushing to implement daily distributions while continuing to fund Bitcoin purchases through common stock offerings, subjecting existing shareholders to equity dilution.