Bitfinex indicates that Bitcoin reserve companies currently hold a total of 1.3 million BTC among 180 listed companies, and raises questions about whether investors' demand for discounted preferred stocks will weaken the financing foundation on which these companies rely to continue buying Bitcoin.

• Strategy holds 848,517 BTC, which accounts for about two-thirds of the total holdings of enterprises counted by Bitfinex.
• STRC closed at $99.34 on October 29, slightly below its par value of $100.
• Strive purchased 6,182 units of BTC from October 17th to 23rd, increasing their holdings to 43,000 units of BTC.
• The approved dividend adjustments for Strategy include setting a registration date on a daily basis, and payments made on weekends are processed in accordance with the settlement rules.

On October 30th, Bitfinex analyzed how Strategy and Strive utilized preferred stocks to finance Bitcoin purchases, while also striving to maintain the attractiveness of these securities to income-oriented investors.

The exchange cited data from industry tracking firm SatsIntel stating that 180 listed Bitcoin holders collectively hold approximately 6.2% of the total 21 million Bitcoins in circulation. Among them, Strategy holds 848,517 Bitcoins, which is a much larger reserve than that of other listed buyers.

The core concern lies in the relationship between the price of preferred stocks and the company's ability to continue financing. According to this analysis, if investors demand a larger discount, the financing cycle could be disrupted, putting the company under pressure to sell Bitcoin in order to pay dividends.

Strategy attempts to make the trading of STRC more stable by distributing dividends on a daily basis.

According to the Form 8-K filing submitted by the company, the shareholders of Strategy approved a revision that allows for daily dividend payments at the special meeting on October 28th.

This document sets November 1st as the effective date for the new dividend arrangement designated as STRC, provided that the revised certificates have been submitted and taken effect. STRF, STRK, and STRD are expected to follow suit on January 1st, 2027.

According to Bitfinex, STRC closed at $99.34 on October 29. The security price fell to $71.25 in June and has been trading in the $90 range since August; since May, its price has been below its par value of $100.

Strategy It is expected that more frequent distributions will reduce price fluctuations related to ex-dividend dates. Bitfinex Quoted remarks indicate that the CEO Phong Le stated that STRC previously fell by about 49 basis points around the time of each monthly ex-dividend date; after switching to two payments per month, the corresponding decline is about 36 basis points.

Le indicates that after switching to daily distribution, volatility may further decrease. According to the exchange's explanation, this change only affects the payment timing and will not increase the amount of the dividend itself.

Strive combines preferred stock financing with the purchase of additional bitcoins

According to Bitfinex, Strive began making daily payments on its SATA preferred stocks starting from June 16th, putting this Dallas-based reserve company ahead of Strategy in terms of dividend frequency.

The report states that SATA is a type of senior preferred security with a floating dividend, which at that time had a dividend yield of 13%, and a target value of $100. Its junior preferred stock, SATS, offers a fixed annual dividend of 15%.

In the event of liquidation, the ranking of creditors for compensation is higher than that of preferred stockholders. Bitfinex explains that holders of SATA have priority over holders of SATS, while common stockholders are ranked after these two types of preferred stock.

Analysis indicates that Strive sold 7 million shares of SATS in October for $90 per share, raising approximately $630 million. Although the par value of each share is $100 and the annual dividend is $15, the issue price was lower than the par value.

The report distinguishes between “initial offering discount” and “signs of financial distress,” and indicates that Strategy initially priced STRC at $90 as well.

Documents submitted to the U.S. Securities and Exchange Commission on October 26 by Strive show that the company purchased 6,182 units of BTC at an average price of $82,732 per unit from October 17 to October 23, which includes fees and expenses. As a result, its holdings increased from 36,818 units of BTC to 43,000 units of BTC.

The same document shows that as of October 23, Strive held $504.4 million in cash and cash equivalents, which is higher than the $317.5 million from a week earlier. Strive also held 505,000 shares of STRC, worth approximately $50.2 million.

Daily dividends are still subject to Nasdaq settlement rules.

The Strategy document distinguishes for American investors between the record date for daily dividends and the actual date when the cash is credited to their accounts.

It is proposed to set a registration day for each calendar day, including weekends and holidays. However, for shares settled through American depository trust companies (Depository Trust Company, DTC), if the registration day falls on a non-business day, it will be considered to have occurred on the previous eligible trading day.

Strategy mentioned that for the dividends over the period from Friday, November 6th, to Sunday, November 8th, there will be a single registration date and ex-dividend date on Friday, with the payments to be made uniformly on Monday, November 9th.

Under the T+1 settlement cycle, Strategy predicts that if someone buys on that Friday, they will not receive these three dividends; however, if someone sells on the same day, they will still be eligible to receive these dividends.

The document states that for shares that are not cleared through DTC, traded in other venues, or held by brokers using different processes, the relevant handling methods may vary.