Bitcoin treasury firm Strive has added $50 million of STRC preferred stock to its corporate treasury, as per an official press release on Wednesday.
The update comes after Strategy bought $1.3 billion worth of Bitcoin, still accumulating BTC with holdings now well above 720,000 BTC. Strategy is a major hodler of Bitcoin, owning one of the largest corporate treasuries in the U.S.
The STRC preferred stock is one of four issued by Strategy, offering investors exposure to the company’s Bitcoin holdings—investments for which Strategy is now under the spotlight due to the depressed price of Bitcoin as it struggles to rebound from lows in October last year. At the time of writing, BTC was trading at $69,442.
“We are encouraged to see innovative institutions continue integrating STRC into their treasury strategies,” said Strategy CEO Phong Le.
“Adoption continues to grow as more institutions recognize the role Digital Credit can play in modern treasury management,” he also said.
Strive now joins companies such as Prevalon Energy, Anchorage Digital, and OranjeBTC in a growing list of firms that have chosen to invest in one of Strategy’s preferred stocks. Strategy is also planning to create more equity, previously announcing a long term plan to convert its convertible debt—which is now valued at $8.2 billion according to Coindesk reports—to equity over a period of 3 to 6 years.
Strive, Strategy, and a handful of other companies were targeted for having large amounts of BTC and almost removed from MSCI indexes for having a huge proportion of digital assets relative to cash and other short-term assets.
“Instead of holding idle cash earning low yields in money market funds, we believe it makes sense to allocate a portion of those reserves to instruments like STRC that provide strong yield dynamics while maintaining stable price behavior with deep liquidity,” said Strive CEO Matt Cole.