Strive Expands Bitcoin Reserves to 25,000 Coins with $36.6M Purchase
Strive has acquired 469 additional Bitcoins for $36.6 million, bringing its total reserves to 25,000 coins valued at $1.95 billion while funding purchases through preferred shares.
Strive, the company promising daily dividend payouts on shares, continues to expand its Bitcoin reserves, acquiring an additional 469 coins for approximately $36.6 million.
The purchase, executed between September 8 and 11 at an average price of around $77,954 per Bitcoin, brought the company's total holdings to a milestone of 25,000 Bitcoins, valued at approximately $1.95 billion at market prices at the time of reporting. This makes Strive one of the largest publicly traded companies globally in terms of Bitcoin holdings.
Financing and Capital Raising
The most intriguing aspect is not just the volume of Bitcoin purchased, but how the transaction was financed. According to Strive CEO Matt Cole, 100% of the capital raised during the week came from the sale of SATA fixed preferred shares. The official value of SATA in circulation has already surpassed the $1 billion mark.
Simply put, Strive utilizes the capital market to raise funds, subsequently channeling this capital into Bitcoin acquisitions. Concurrently, the company reported a leverage ratio of 53.5%, meaning that for every $100 of Bitcoin on its balance sheet, there are approximately $53.50 of liabilities stemming from preferred shares and debt.
Strategic Outlook and Market Ranking
"The current acquisition also points to a slight deceleration in pace. In the preceding week, Strive purchased approximately 1,375 Bitcoins for roughly $109 million."
Despite this, the company maintains an ambitious aspiration: the CEO stated that Strive could potentially reach second place globally among publicly traded companies holding Bitcoin, although he emphasized this is not his baseline scenario.
Currently, Strive ranks fifth, trailing Strategy, Twenty One, Metaplanet, and MARA. To surpass Twenty One, which holds 43,514 Bitcoins, Strive would need to acquire an additional 18,515 coins. At the remaining pace through the end of the year, this translates to roughly 1,234 Bitcoins weekly—an exceptionally ambitious target.
This maneuver highlights the ongoing race among public firms to accumulate Bitcoin as a core balance sheet asset. While Strategy, the largest holder, remained unchanged this week with 845,050 Bitcoins, Strive continues to escalate its exposure through capital raises. For investors, this offers a proxy exposure to Bitcoin via equity, yet it simultaneously amplifies the company's reliance on the cryptocurrency's valuation and its capacity to service financing obligations.
