Strive Holds 24000 Bitcoin to Offset US Debt Risk

Strive holds 24,000 Bitcoin on its balance sheet. The company treats this asset as long-term capital. It aims to hedge against the debasement of the US dollar.

US debt to GDP has grown at 3.2% compounded annually for 26 years. Jeff Walton, Chief Risk Officer at Strive, views this trend as systemic. He states the firm underwrites this specific risk profile.

New security offers daily 13% yield

Strive launched a perpetual preferred equity security named SATA. It pays an annual interest of 13%. This equates to 13 dollars per share.

The company pays this dividend every single day. It is the first security in capital markets history to do so. The balance sheet includes 1.9 billion dollars in Bitcoin. It also holds 200 million dollars in cash and 50 million dollars in marketable securities.

Equity instrument trades with high beta

The common equity instrument tracks Bitcoin with a beta of 2. For every one point increase in Bitcoin, the stock moves two points. This structure appeals to investors seeking higher volatility than the underlying asset.

Global access via tokenization

Strive is open to institutional investors from India and other regions. It seeks global capital for its US securities. Tokenization is the method used to broaden market access. As reported by GN markets/crypto (en-US), this technology allows assets to trade across different investor classes.