Key takeaways
- TD Cowen raises its Strive price target to $56 from $44, a hike of about 27%.
- Strive holds 35,595 BTC, the fourth-largest bitcoin holdings among publicly traded companies, just ahead of MARA.
- Strive upsizes its SATS preferred offering to 7M shares at $90 each, seeking about $630M for bitcoin.
TD Cowen raised its price target on Strive (ASST) to $56 from $44, a hike of about 27%, as Strive's bitcoin holdings climbed to 35,595 BTC from 28,000 BTC at the end of September. According to The Block, those 35,595 BTC give Strive the fourth-largest bitcoin holdings among publicly traded companies, just ahead of MARA.
Strive also upsized its SATS preferred stock offering from 5M to 7M shares at $90 each, looking to raise about $630M. Proceeds from the SATS offering are designated primarily for bitcoin and bitcoin-related products.
A Bigger SATS Deal
The SATS preferred offering is expected to close on October 20, so the $630M remains a target until the SATS deal closes. The 7M SATS shares carry an aggregate stated value of $700M at $100 par, while cash raised comes to about $630M before underwriting discounts.
TD Cowen expects the SATS offering to help fund even more bitcoin buying without adding more common shares. That is the case the analysts made alongside the higher $56 target: preferred stock lets Strive keep buying bitcoin without adding more common shares for existing holders to absorb.
Fourth Among Public Holders
Strive reached 35,595 BTC after bitcoin purchases on October 13 and 14. Strive's holdings climbed from 28,000 BTC at the end of September to 35,595 BTC, a jump that moved Strive to the fourth-largest bitcoin holdings among publicly traded companies, just ahead of MARA. Proceeds from the upsized SATS offering are designated primarily for bitcoin, so the 7M shares point to more buying rather than a pause.
We think raising the SATS deal from 5M to 7M shares suggests investor demand for bitcoin-linked income paper is real. Several firms competing for investor capital to buy bitcoin also makes the demand story less dependent on one company like Strategy.
Why It Matters
Strive upsized its SATS deal from 5M to 7M shares with proceeds designated primarily for bitcoin, and we think that suggests investor demand for bitcoin-linked income paper is real. Several firms competing for investor capital to buy bitcoin makes the demand story less dependent on one company like Strategy, which is healthier for Bitcoin than a single corporate treasury holding the bid. The incentive is plain: fiat savers chasing yield hand dollars to Strive, and Strive turns them into bitcoin, a scarce asset no central bank can print. Preferred holders still own a claim on Strive rather than coins under their own keys, so the counterparty risk sits with them.
