Hello and welcome to Bitcoin Balance Sheet, the twice weekly email from Bitcoin Treasuries, where we track the latest in corporate Bitcoin buying.

Each Monday, you'll receive a quick blast on the top buyers over the last week. We'll follow that up every Friday with digest and analysis. Enjoy!

Front Run: The Bitcoin Treasuries Pre-Party

The conversations that matter don't happen on conference stages.

Front Run gathers the CFOs, allocators, and founders actually deploying capital into Bitcoin treasuries, the day before Bitcoin conference week begins.

This is where a treasury CEO using a capital markets strategy compares notes with the miner producing its own Bitcoin treasury. Where the allocator who just wrote a $10 million SATA check meets the CFO figuring out how to issue preferred at 0.8x mNAV.

Hosted by Bitcoin Treasuries Media and BitcoinTreasuries.net — this is the place for the people building Bitcoin balance sheets, talking about what actually works.

When: Sunday, April 26 | 2:00 PM – 11:00 PM PDT
Where: Stadium Swim, Las Vegas

What It Means for Treasury Preferred Equity When STRC and SATA Trade Below Par

Both Strategy’s STRC and Strive’s SATA preferred securities have recently traded below their $100 par values, raising questions about treasury preferred equity as a sustainable funding mechanism. 

While STRC has recovered to par, SATA currently trades at $89, which translates to an 11% discount that the company must navigate as it continues to offer preferred equity issuance. 

The challenge of sub-par pricing affects any treasury company using preferred equity, regardless of size. STRC traded below $100 recently, and Strategy responded by issuing zero preferred equity — across STRC, STRK, STRF, or STRD — for two consecutive weeks despite holding over $20 billion in shelf capacity. Instead, the company relied entirely on common stock despite favorable 0.96x mNAV pricing.

To understand the hesitation, let’s look at the math. 

If a company issues preferreds at $95 when par is $100, it receives $95 million in proceeds but commits to dividends calculated on $100 par value. For STRC’s 10% yield, that means $10 million annually on $95 million received, or a 10.53% effective cost of capital rather than the stated 10%. 

Strive’s figures tell a similar story. The company recently raised $225 million in SATA — upsized from $150 million after receiving a staggering $600 million in orders — yet the security now trades at $89. 

Issuing preferred equity at $89 receives $89 million in proceeds but commits to perpetual dividends based on $100 par value. For SATA, that's $12.25 million annually on $89 million received — 13.76% effective cost of capital rather than the marketed 12.25%. Basically, the spread between Bitcoin’s expected returns and the true cost of capital narrows uncomfortably.

These economics force difficult decisions. Issue at below-par prices and accept higher effective costs, or pause issuance and potentially miss attractive opportunities to accumulate Bitcoin at favorable entry prices.

Let’s compare this to common stock economics. Strive’s ASST trades at 0.57x mNAV (46% discount) while SATA trades at $89 (11% discount to par). Both create immediate losses relative to the value received by an investor. However, common stock carries no perpetual obligations while preferred equity locks in annual dividend commitments regardless of Bitcoin’s future price action or the company’s circumstances.

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Can It Recover?

STRC’s return to $100 demonstrates that sub-par pricing can quickly reverse. 

While the security traded below par, Strategy paused issuance, and markets eventually repriced STRC back to par. Whether this pattern can come true for SATA, or whether the 11% discount persists, will provide an important data point on how different preferred structures and company profiles affect secondary market pricing.

Several factors could explain pricing differences between securities at any given moment. For starters, market structure and liquidity matter. Established securities with broader holder bases may sustain tighter trading ranges than newer offerings. 

Time in the market could also play a role. STRC benefits from Strategy issuing Bitcoin-backed instruments across multiple market environments, while SATA continues to operate as a newer instrument. Yield spreads reflect risk assessments that markets continuously update.

Why Pricing Diverges

The $11 gap between STRC ($100) and SATA ($89) — despite SATA offering 225 basis points higher yield — reflects several dynamics. 

First, scale provides natural advantages. Strategy’s $41 billion market cap and established institutional relationships support liquidity and price stability that newer, smaller preferred offerings may take time to develop. Additionally, market structure matters. Thin trading volumes in any newly issued security can create volatility that is disconnected from underlying fundamentals.

Where both companies differed was in their responses to below-par trading. For Strategy, the move was straightforward: stop issuing preferred equity. The company shifted entirely to common stock during this period, accepting 4% dilution at 0.96x mNAV rather than issuing STRC at potential discounts to par.

Strive’s response emphasizes structural resilience over secondary pricing concerns. 

"We purposefully built our preferred-only amplification structure to handle Bitcoin's volatility and ride out drawdowns," Strive told BitcoinTreasuries.net. “With over a year's cash for SATA dividends and over 17 years of potential interest coverage from Bitcoin holdings, Strive views the structure as sustainable regardless of where SATA trades day-to-day.”

"We're well capitalized, our thesis is unchanged, and we remain focused on long-term Bitcoin per share growth," management said. "Our decisions have and will continue to be disciplined and driven by our focus on maximizing long-term shareholder value, not reacting to short-term price action."

The contrasting approaches — Strategy pausing until pricing recovers, Strive emphasizing conviction in structural soundness — reflect different philosophies about preferred equity's role. Both strategies have merit depending on circumstances, time horizons, and capital alternatives available.

Inherent Challenges

The recent sub-par pricing affecting both STRC and SATA highlights challenges inherent in treasury preferred equity regardless of the quality of their execution strategies. 

By promising fixed yields on perpetual obligations, these securities are inherently sensitive to market conditions, interest rate environments, and perceived credit risk in ways that common stock avoids. 

When Bitcoin crashed to $60,000 from $88,000, both companies' preferred securities came under pressure — which was hardly surprising given the underlying asset’s 31% decline. That STRC has recovered to par while SATA remains at $89 could reflect numerous factors, including timing, liquidity, holder composition, or simply where each security sits in its price discovery journey.

The more important question is what happens next. 

If STRC can sustain par pricing, Strategy regains the ability to issue preferred whenever management chooses, preserving non-dilutive amplification as a viable funding path. The company's recent pause suggests they'll only issue when pricing supports it, even if that means relying on common stock temporarily.

For Strive, the calculation differs. With a stated intention to "issue substantially more SATA over the next 12 months," the company must decide whether SATA at $89 represents temporary dislocation worth weathering, or whether issuance plans require adjustment. 

Moreover, when securities trade below par shortly after oversubscribed offerings, it raises questions about primary-to-secondary market dynamics. Strong order books don't guarantee sustained pricing if buyers were seeking allocations rather than long-term positions.

Two structural questions persist. Can preferred equity scale as a sustainable treasury funding mechanism if secondary markets consistently price these securities below par? Or does favorable pricing require specific company characteristics — scale, institutional relationships, established shareholder bases — that limit the model's broader applicability?

Special thanks to our partners:

• AnchorWatch. AnchorWatch makes Bitcoin ownership safer and easier by combining advanced custody expertise with industry-grade insurance. As a Lloyd’s of London Coverholder, it writes specialized policies that address digital-asset risks, giving clients trusted coverage and peace of mind. Learn more: AnchorWatch

• Arch Lending. Get instant, secure loans backed by your Bitcoin, Ethereum, or Solana—no need to sell your assets. Arch Lending offers fast approvals and trusted custody for both individuals and institutions. Learn more: Arch Lending

• Cadena Bitcoin. A p2p bitcoin lending marketplace with a unique emphasis on working with treasury firms and businesses, as well as the savvy bitcoin-native investors who visit our website. Learn more: Cadena Bitcoin

• Coinkite. Coinkite is a leader in security and hardware manufacturing and the maker of some of the most iconic Bitcoin products, such as OPENDIME, COLDCARD, BLOCKCLOCK, SATSCARD, TAPSIGNER and SATSCHIP. Learn more: Coinkite

• Cryptio. Cryptio is an enterprise-grade accounting software platform built specifically for digital assets and cryptocurrencies. It enables businesses to transform blockchain transaction data from multiple exchanges and custodians into auditable financial records, supporting compliance with GAAP and IFRS standards. Learn more: Cryptio

• The Hemisphere Foundation. Hemisphere develops open-source solutions designed to help treasury teams securely manage, deploy, and optimize their BTC holdings, with benefits of self-custody and Bitcoin native deployment. Learn more: The Hemisphere Foundation

• Orange Wheel Advisors. Orange Wheel Advisors is a strategic consulting firm that helps companies navigate Bitcoin’s impact on corporate finance and competitive strategy. With expertise spanning treasury management, payments, capital structure, mining, and investor communications, they provide executive education, tailored strategies, and execution support to guide businesses through the global monetary transition. Learn more: Orange Wheel Advisors

• o21 Solutions. o21 develops and implements Bitcoin-powered corporate strategy, transforming value chains with strategic expertise and tailored advisory services, with a focus on both Treasury and Operations - balance sheet accumulation, mining, and payments. Reduce cycle time through the corporate Bitcoin adoption journey through our pre-packaged or tailored engagements. Learn more: o21 Solutions

• Psalion. Psalion is a Bitcoin and digital-asset yield manager that offers institutional‑style investment strategies to professional investors, family offices, corporates, and private clients via separately managed accounts and yield funds. Learn more: Psalion

• Secure Digital Markets (SDM) provides unparalleled liquidity, execution speed, and bespoke customer service, making it the top choice for institutional investors seeking reliable digital asset trading solutions. With deep expertise in capital markets and strict regulatory standards, SDM stands out as the premier platform for all digital asset treasury teams looking to optimize their trading and treasury operations. Learn more: Secure Digital Markets (SDM)

• Stacking Sats Inc. Official IT partner at BitcoinTreasuries, Stacking Sats Inc via its subsidiary, Framework IT, is a managed IT services firm with a 17-year track record of providing best-in-class IT support, strategy, and cybersecurity, boasting high recurring revenue and long-term client contracts. It’s also one of the top 20 holders of Bitcoin among global private companies. Learn more: Stacking Sats Inc

• XCE. An executive recruitment group that combines a profitable recruitment business with a Bitcoin treasury strategy. The company turns over a decade of executive recruitment experience and four years of Bitcoin accumulation into a public Bitcoin‑powered growth engine, using a proven operating business to drive Bitcoin treasury accumulation. Learn more: XCE

• Zaprite. Zaprite is a non-custodial payment platform that allows individuals and businesses to seamlessly accept both bitcoin (on-chain and lightning) and fiat payments in a unified, customizable checkout experience. Users can easily issue invoices, generate payment links, and connect multiple wallets or custodial accounts, all while handling their own funds directly. Learn more: Zaprite

Our events calendar:

• Front Run: The Bitcoin Conference Pre-Party. ​Before the main stage lights up, the people actually shaping Bitcoin treasury strategy gather here. This is where operators, allocators, CFOs, founders, and board-level decision-makers connect off-agenda, drinks in hand, signals uncensored. Hosted by Bitcoin Treasuries Media, BitcoinTreasuries.net, and other co-hosts. Sunday, April 26

  2:00 PM, Stadium Swim, Las Vegas.

Over To You: What Do You Track?

We want to make this the go-to resource for corporate Bitcoin strategy — and that means learning from our readers.

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