TLDR
- Strive pivots to Bitcoin treasury with $750M financing, stock drops 24.7%.
- Strive unveils $750M Bitcoin plan, stock plunges amid bold treasury shift.
- Strive bets $750M on Bitcoin treasury, shares sink nearly 25% Monday.
- Strive launches Bitcoin treasury push, stock tumbles on financing news.
- Strive fuels Bitcoin war chest with $750M raise, investors send stock down.
Strive, Inc. (Nasdaq: ASST) closed down 24.76% at $6.39 on Monday after revealing a bold Bitcoin treasury strategy.
The company aims to expand its Bitcoin treasury holdings using proceeds from a $750 million financing round. This sharp decline came amid heightened market attention on the firm’s transition from Asset Entities Inc. to a Bitcoin-focused capital model.
Bitcoin Treasury Plan Drives Aggressive Capital Moves
Strive launched operations as a public company by acquiring 69 Bitcoin through a Section 351 exchange during its merger with Asset Entities. It plans to use $750 million in recent financing and a potential $750 million more through warrants to purchase additional Bitcoin. The company believes this approach will maximize Bitcoin per share and create long-term equity value.
Strive has registered a shelf offering as a well-known seasoned issuer (WKSI), giving it fast access to capital. This allows the firm to execute offerings such as an at-the-market (ATM) program with a $450 million target. Strive also aims to issue perpetual preferred equity to boost its Bitcoin treasury while appealing to income-focused capital providers.
The firm holds an equity-only capital structure and has not issued debt, but it may consider debt-like options to support its Bitcoin strategy. The perpetual preferred equity would offer accretive Bitcoin exposure for common equity holders. Depending on favorable conditions, this product is expected to roll out in 2025.
Board Aligns with Bitcoin Treasury Mission
Strive’s board is composed of notable figures from the Bitcoin ecosystem and traditional finance. CEO Matt Cole leads the board, supported by executives like CFO Ben Pham, CLO Logan Beirne, and CMO Arshia Sarkhani. External directors include leaders from Swan, The Bitcoin Bond Company, and The Bitcoin Opportunity Fund.
Board members also include academic and policy experts, adding diversity to Strive’s governance. Each member reportedly shares a commitment to expanding the Bitcoin treasury model. The leadership views its governance structure as essential to managing capital markets and crypto integration effectively.
The board has also brought on a VP of Bitcoin Strategy as a board observer to ensure alignment with treasury goals. This structure reinforces the company’s strategic push for long-term Bitcoin accumulation. The leadership expects this alignment to support growth in Bitcoin per share and common equity value.
Repurchase and Shelf Tools Provide Flexibility
Strive implemented a $500 million stock repurchase program to support share value under changing market dynamics. The program complements the $450 million ATM facility, providing flexibility to increase Bitcoin per share without diluting ownership. The firm may adjust use of these tools based on broader market signals and Bitcoin pricing.
Management noted that shelf registration under the WKSI designation removes limitations on capital raising. This advantage allows Strive to deploy capital quickly into its Bitcoin treasury and enables rapid response during favorable pricing windows for both Bitcoin and equity securities.
The company’s focus remains on expanding its Bitcoin holdings while maintaining capital structure discipline. With no current debt obligations, Strive holds the flexibility to finance growth while preserving shareholder interests. Its Bitcoin treasury strategy centers on long-term Bitcoin exposure while balancing share value and capital efficiency.
