Samson Mow says SATA rebound could pull Strategy’s STRC to par

by Adrian Russell
0 comments


Strive’s SATA preferred shares have recovered nearly 16% from their June low to about $97, prompting Jan3 CEO Samson Mow to predict that the rebound could help Strategy’s STRC return to its $100 par value.

Summary

  • Strive’s SATA has rebounded nearly 16% from its June low to about $97.
  • Samson Mow expects SATA’s recovery to help Strategy’s STRC return toward its $100 par value.
  • Three major U.S. preferred stock ETFs collectively hold $756 million worth of STRC.

Yahoo Finance data show SATA has climbed from $83.30 and now trades within roughly 3% of the level it was designed to track. The recovery has erased most of the preferred stock’s late-June decline, while STRC remains about 13% below par despite receiving increased demand from major U.S. exchange-traded funds.

Strive’s SATA stock trades at $96.58, approaching its $100 par value.
Source: Yahoo Finance

According to Mow, steps taken by Bitcoin treasury companies to improve their balance sheets and support their preferred shares have started rebuilding confidence in the products. He told Cointelegraph that SATA’s return toward $100 could reassure investors that the funding structure used by Strive and Strategy remains functional.

“I think every action that Strategy has undertaken to strengthen their balance sheet and encourage STRC to go back to par is also working.”

Mow expects the two securities to move together because investors are assessing whether Bitcoin-linked preferred shares can continue funding their dividends and hold close to their stated values.

“But everything sort of works in tandem. I think as SATA returns to par, you’re going to see STRC return to par too, because people say, ‘OK, this model’s not broken.’ Everyone is capitalized for three or more years of dividend payments… there was no reason to panic all along,” he added.

SATA’s recovery supports confidence in Bitcoin preferred shares

Strive introduced SATA in November 2025 to raise money for expanding its Bitcoin holdings without issuing more common stock. The variable-rate perpetual preferred shares use dividend adjustments to encourage trading around their $100 par value.

By changing the payout rate when needed, Strive can make SATA more or less attractive to investors as its market price moves. The company designed the structure to provide recurring access to capital while limiting dilution for common shareholders, according to its stated treasury strategy.

Strategy launched STRC in 2025 under a similar model. The preferred stock also uses a variable dividend to keep its price near $100, placing it in a category that Strategy calls “digital credit.”

During the late-June selloff, both products dropped well below their intended levels. SATA has since recovered to around $97, but Yahoo Finance data show STRC closed at $86.89 on July 24 after gaining 2.29% during the session. It later rose to $87.14 in after-hours trading.

Mow views the difference between their recoveries as temporary rather than evidence that STRC’s structure has failed. His forecast rests on investors treating SATA’s rebound as proof that preferred shares backed by Bitcoin treasury companies can recover after a sharp decline.

Alongside the price recovery, Mow pointed to companies refining how they raise capital and manage their Bitcoin holdings. He cited Lyn Alden’s Orange Juice treasury company, launched on July 15, as an example of a new entrant using a different operating model and starting with a lower Bitcoin acquisition cost.

BitcoinTreasuries ranks Strategy as the largest corporate Bitcoin holder, with 843,775 BTC. Strive holds 19,921 BTC, placing it seventh among public companies tracked by the platform.

Strategy leads public companies with 843,775 BTC.
Source: BitcoinTreasuries

Those holdings create different levels of Bitcoin exposure, but both companies rely on capital-market products to support their treasury plans. For Strive, SATA offers a route to fresh funds without selling more common shares, while Strategy uses STRC and other securities to finance additional Bitcoin purchases.

ETF demand strengthens STRC despite its discount

Institutional demand has already placed STRC at the top of three large U.S. preferred stock ETFs, even though the security continues to trade well below par.

Michael Saylor, Strategy’s co-founder and executive chairman, disclosed on July 24 that STRC is now the largest holding in BlackRock’s iShares Preferred and Income Securities ETF, Virtus InfraCap’s U.S. Preferred Stock ETF and VanEck’s Preferred Securities ex Financials ETF.

According to figures shared by Saylor, the three funds collectively hold $756 million of STRC. Their portfolios also contain preferred shares issued by established U.S. companies, giving ETF investors indirect exposure to Strategy’s Bitcoin-linked security alongside traditional income products.

In his X post, Saylor presented the ETF positions as evidence that Strategy’s “digital credit” securities are entering institutional portfolios. The holdings show that asset managers have allocated substantial capital to STRC, although its July 24 closing price remained 13.11% below $100.

STRC’s discount matters to Strategy because the company sells the preferred shares to fund Bitcoin purchases. Strategy can issue stock near or above par and direct the proceeds into Bitcoin, but a large discount reduces the amount of capital it can raise from each newly issued share.

Selling more STRC while it trades around $87 would therefore produce less funding per share than an issuance completed near $100. The lower price could weaken the economics of using the security for Bitcoin accumulation, even if existing ETF demand continues.

Mow’s outlook links SATA’s recovery with a possible improvement in those conditions. If investors interpret Strive’s return toward par as evidence that variable-rate Bitcoin preferred shares can stabilize, his view suggests STRC could attract enough demand to narrow its discount and restore a more efficient funding channel for Strategy.



Source link

Related Posts

Leave a Comment