Strive Buys $335M More Bitcoin, Now Fourth-Largest Public Holder

Strive Boosts Bitcoin Holdings, Becomes Fourth-Largest Corporate Holder

Strive, a company focused on Bitcoin treasury management, has significantly expanded its digital asset holdings, acquiring 4,045 Bitcoin (BTC) for approximately $335 million last week. This latest purchase brings the company’s total Bitcoin reserves to 36,818 BTC, valued at around $3 billion. The move propels Strive past MARA Holdings to become the fourth-largest Bitcoin holder among publicly traded companies in the United States.

Strive’s Aggressive Acquisition Strategy

According to an 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, Strive purchased the 4,045 Bitcoin between October 12th and 16th. The average acquisition price, including fees and related expenses, was approximately $82,803 per Bitcoin.

This substantial acquisition underscores Strive’s commitment to its Bitcoin treasury strategy, contrasting with recent actions by MARA Holdings. On-chain analysis platform Arkham Intelligence has tracked significant Bitcoin transfers from wallets associated with MARA to exchanges Binance and Gate.io, totaling approximately $82 million. This has been interpreted by the market as a partial divestment by MARA, highlighting a divergence in treasury strategies between the two companies.

Funding the Expansion

Strive’s recent Bitcoin purchases were financed through a combination of funding avenues. On the same days as the Bitcoin acquisition, the company announced it had raised approximately $369 million by exercising warrants, leading to the issuance of 13.7 million common shares.

This issuance resulted in a 12.4% increase in Strive’s effective share count, closely mirroring the 12.3% increase in its Bitcoin holdings. This suggests that while the company has grown, the “Bitcoin per share” metric has remained largely consistent, avoiding significant dilution for existing shareholders.

Innovative Financing with New Preferred Stock

Strive has also been active in developing new financing tools. The company recently announced the launch of a new series of preferred stock, dubbed “SATS,” offering a fixed annual dividend of 15%. Strive has already priced a $630 million offering of this new preferred stock. Dividend payments are expected to commence daily, accumulating each business day, starting November 9th, subject to board approval.

This daily payment structure is a notable departure from the typical quarterly or semi-annual dividend payments of traditional preferred stocks. The “SATS” offering is designed to provide investors with greater cash flow flexibility and appears to be tailored for institutional and retail investors with a higher risk tolerance seeking stable income.

If the full $630 million raised from the SATS offering is deployed into Bitcoin, it could add approximately 7,600 more BTC to Strive’s holdings, based on current average prices. However, the company has not yet explicitly committed the funds to Bitcoin, and investors are advised to monitor future announcements.

Market Reaction and Future Outlook

The news of Strive’s increased Bitcoin holdings has been met with a positive market response. ASST shares rose approximately 7.7% in intraday trading on Monday, closing at $25.95, according to Yahoo Finance data. Investors view this SEC disclosure as a clear signal of the company’s continued execution of its Bitcoin treasury strategy.

Strive’s recent activity represents a significant expansion of its Bitcoin reserves. Over the past two weeks, the company has acquired approximately 7,600 Bitcoin. Coupled with potential future funding from the SATS preferred stock, Strive is actively growing its Bitcoin treasury. This approach, characterized by “high-frequency additions and diversified financing,” differs from the long-term accumulation strategies of companies like MicroStrategy, which holds 848,000 BTC, and Metaplanet’s international expansion.

The timing of Strive’s significant purchases within the current Bitcoin price range of $70,000-$80,000 suggests management’s confidence in medium-term price targets. Should the SATS funding be allocated to Bitcoin, Strive could potentially challenge the positions of the second and third-largest corporate Bitcoin holders. Meanwhile, MARA’s divestment signals a potential divergence in strategies among Bitcoin treasury companies, which could become a key factor influencing stock performance in the future.