Strive Announces $500 Million Stock Sale to Expand Bitcoin Holdings

Strive Asset Management has initiated a $500 million stock sale aimed at boosting its Bitcoin reserves. This move comes as part of the ongoing debate regarding the exclusion of cryptocurrency treasury companies from major stock indices.

Key Takeaways

Strive Asset Management is launching a $500 million stock sale to acquire more Bitcoin and support its corporate needs.
The company currently holds 7,525 BTC, making it the 14th-largest corporate Bitcoin holder.
This strategy aligns with the approach taken by prominent figures like Michael Saylor.
Strive is involved in discussions about how digital asset treasury companies are treated in stock indices, particularly the MSCI index.
The stock sale could significantly increase Strive's Bitcoin holdings and has already resulted in a rise in the company's stock price.

Strive Bitcoin treasury company logo on stock chart

Strive Asset Management's Focus on Bitcoin

Strive Asset Management, co-founded by entrepreneur and politician Vivek Ramaswamy in 2022, has made a strategic shift this year toward accumulating a Bitcoin treasury. This change occurred through a public reverse merger that allowed the company to realign its balance sheet for long-term Bitcoin investment. Currently, Strive holds 7,525 BTC, making it the 14th-largest corporate holder of Bitcoin, as outlined in the company’s disclosures.

The company’s approach mirrors the strategies of Michael Saylor and others who have financed Bitcoin acquisitions through both debt and equity. Strive’s Bitcoin inventory grew in September after it agreed to acquire Semler Scientific, a transaction that has positioned the newly combined entity among the top corporate Bitcoin holders on a global scale.

Following this announcement, Strive's stock saw an increase, with shares more than doubling since the start of the year, according to market data.

Ongoing Discussions on Cryptocurrency Market Regulations

Strive is actively participating in dialogues concerning the classification of digital asset treasury companies within major stock indices. Recently, CEO Matt Cole commented on MSCI’s consultations with institutional investors about potentially excluding firms that hold more than 50% of their assets in cryptocurrencies. Cole expressed concerns that such exclusions could skew capital allocation and limit choices for investors.

The outcome of MSCI’s review may impact index funds and exchange-traded funds that are tethered to its benchmarks, which could influence billions of dollars in passive investments.

Since the launch of its first exchange-traded fund in August 2022, Strive Asset Management has expanded its portfolio to oversee more than $2 billion in assets under management. Unlike spot Bitcoin ETFs, which provide direct exposure to Bitcoin’s price, treasury companies like Strive typically utilize leverage through their balance sheets, equity issuance, and strategic acquisitions, which can magnify both profits and losses.

If the $500 million stock sale is fully directed toward Bitcoin purchases, analysts believe that it could dramatically enhance Strive’s Bitcoin holdings.