Strive Launches $500M Stock Offering to Expand Bitcoin Holdings

• Strive is launching a $500 million preferred stock offering to acquire Bitcoin and related digital asset products.
• The company currently holds 7,525 BTC worth $694 million, ranking as the 14th-largest corporate Bitcoin holder.

Strive,​‍​‌‍​‍‌​‍​‌‍​‍‌ the publicly traded asset manager co-founded by entrepreneur Vivek Ramaswamy, made an announcement this week of a huge fundraising campaign aimed at deepening its Bitcoin holdings. The company is going to open a preferred stock offering to raise $500 million, signalling yet another audacious move by corporate treasuries that are warming up to cryptocurrency investments. 

The company indicated that the money would be used to cover a variety of corporate expenses, among them the purchase of Bitcoin and related products, while also keeping the operational working capital at the usual level. Strive further intends to buy income-generating assets to fuel the growth of its business, but it did not reveal any specific investment targets in the press ​‍​‌‍​‍‌​‍​‌‍​‍‌release.

Growing Bitcoin Treasury Strategy

Strive​‍​‌‍​‍‌​‍​‌‍​‍‌ is now a top 20 corporate Bitcoin holder, with its treasury holding 7,525 BTC. The company changed its business model and strategy by going through a reverse merger in May. 

Last month, Strive revealed that it had inked a purchase deal with Semler Scientific, thereby making the merged entity one of the leading corporate Bitcoin holders worldwide. This strategic merger is a clear indication of Strive’s intention to increase its cryptocurrency reserves significantly and to broaden its market reach in the digital asset ​‍​‌‍​‍‌​‍​‌‍​‍‌sector.

After​‍​‌‍​‍‌​‍​‌‍​‍‌ its first exchange-traded fund was launched in August 2022, Strive Asset Management has grown impressively and now manages more than $2 billion in total assets. The company’s stock rallied on the news, adding 3.6% on Tuesday to end at $1.02 per share. Strive shares have more than doubled from the beginning of the year, which is a clear indication of the investors’ trust in the Bitcoin treasury strategy and the general business direction. 

CEO of Strive, Matt Cole, questioned the logic of MSCI’s proposal to exclude companies that have more than 50% of crypto assets on their balance sheets earlier this month. Cole asked the stock market index provider to let the market decide whether Bitcoin treasury companies are suitable for passive investment portfolios. This support by the CEO exemplifies the ongoing debates about the position of cryptocurrency in the traditional investment frameworks and the eventual institutional acceptance of digital assets as viable treasury ​‍​‌‍​‍‌​‍​‌‍​‍‌reserves.

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