Strive, Inc. (NASDAQ: ASST) saw its shares climb 9.43% to $21.59 by 13:46 EDT on Tuesday, with trading volume reaching 9.3 million shares—more than double its recent average. The surge followed the company's announcement of its largest weekly Bitcoin acquisition in several months.
Between August 17 and August 21, Strive purchased 1,110 Bitcoin at a total cost of approximately $81.5 million, bringing its treasury holdings to 21,356 coins. The average cost per coin, including fees, was $73,409. This acquisition increased the company's Bitcoin stash by 5.48% over the week.
However, the financing method diluted the impact for common shareholders. The number of effective common shares rose by 4.24% to 89.68 million, resulting in a Bitcoin per share increase of just 1.19%—reaching 0.0002381 BTC per share. This is a key metric for investors who view the company as a Bitcoin treasury play.
The dilution stems from the company's use of preferred equity, particularly its SATA preferred shares. With 8.27 million SATA shares outstanding, each carrying a $100 liquidation preference, these preferred holders have a claim of approximately $827 million, which sits ahead of common shareholders in the capital structure.
As of Tuesday afternoon, Bitcoin was trading around $78,646, valuing Strive's holdings at about $1.68 billion. Combined with cash and its $48.6 million stake in STRC, the company's gross liquid assets totaled approximately $1.90 billion—nearly matching its $1.94 billion market capitalization. However, after accounting for the preferred claim, net liquid assets for common shareholders stood at roughly $1.07 billion, or $11.96 per effective share. ASST traded about 80% above this estimate.
The preferred financing carries a significant cost. In August, SATA's annualized dividend rate reached 13%, and Strive disclosed $39.7 million in preferred dividends during the first half of the year, while operating cash flow was negative $39.4 million. The balance sheet has expanded rapidly, with total assets reaching $1.38 billion as of June, including $1.16 billion in Bitcoin.
Chief Executive Matt Cole expressed strong conviction that the Bitcoin bear market is over, and the cryptocurrency has indeed rallied, gaining 28% in August as a softer dollar boosted demand for alternative assets. Bitcoin briefly surpassed $80,000 in early trading Tuesday before retreating.
Analysts have been generally bullish on Strive, with consensus rating of Strong Buy and an average price target of $26.60. However, they emphasize that the accretive nature of Bitcoin purchases depends on whether Bitcoin per share increases. Tuesday's filing shows a modest 1.19% weekly increase, which lags the treasury's headline growth of 5.48%.
The situation highlights a broader tension in the Bitcoin treasury sector. While companies like Strategy (MSTR) have raised billions through equity offerings to accumulate more Bitcoin, such moves can dilute existing shareholders. Investors are increasingly focused on Bitcoin per share metrics rather than just total holdings.
Risks remain, including potential declines in Bitcoin prices, ongoing dilution from common and preferred issuances, and the growing burden of preferred dividend payments. As Strive continues to expand its treasury, the market will closely watch whether per-share metrics can keep pace with the headline numbers.
