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Strive buys Strategy’s STRC shares in circular $50M deal

Bitcoin firms' complex treasury swap creates negative carry amid falling share prices.

  • Bitcoin treasury firm Strive purchased $50 million of rival Strategy‘s dividend-paying STRC stock in March 2026.
  • The purchase follows Strive raising $118 million in January by selling its own dividend-paying SATA shares at a discount.
  • Strive now earns a 125-basis-point “negative carry” on the deal, paying 12.75% on SATA while earning 11.5% on STRC.
  • Both company CEOs hailed the transaction as a milestone for institutional adoption of “digital credit” instruments.
  • The share prices for both companies’ common stocks have fallen significantly year-to-date.

The Nasdaq-listed bitcoin treasury company Strive has purchased $50 million worth of dividend-paying shares from its rival, Strategy, in a circular capital move that highlights the complex financial engineering within the crypto sector. The deal, announced on March 11, 2026, involves Strive buying Strategy‘s STRC instrument, which pays an 11.5% annualized yield.

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However, this acquisition was funded by Strive’s own earlier capital raise. Consequently, in January, Strive raised roughly $118 million by selling its own SATA shares at $90 each—$10 below their $100 par value. SATA currently pays a 12.75% dividend, a rate far higher than junk bonds.

This creates a negative carry of 125 basis points for Strive, assuming STRC holds its $100 peg. Meanwhile, Strive framed the move as a strategic treasury allocation. CEO Vivek Ramaswamy stated, “Instead of holding idle cash… we believe it makes sense to allocate a portion of those reserves to instruments like STRC.”

Strategy CEO Phong Le also praised the deal for proving institutional adoption. Michael Saylor publicly thanked Strive for the purchase. Nevertheless, both companies’ common stocks have suffered significant declines year-to-date.

Strive’s ASST stock is down 37%, while Strategy’s MSTR is down 8%. Furthermore, STRC’s price stability has required seven consecutive dividend hikes to trade near its $100 target. Strive now counts its STRC holding as part of a dividend reserve meant to cover SATA’s $54 million annual obligation.

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