In a significant transformation of its financial position, Strive, Inc. (ASST), a cryptocurrency treasury firm, has announced a bold strategy that includes retiring 92% of its debt and significantly boosting its Bitcoin holdings. This move is being closely monitored as it positions the company as a formidable player in the corporate blockchain landscape.
Earlier this month, Strive successfully reduced its liabilities by eliminating $110 million of debt inherited from its recent acquisition of Semler Scientific. This hefty reduction comprises $90 million in convertible notes and a $20 million credit facility provided by Coinbase, which has now been fully paid off, leaving Strive’s Bitcoin assets entirely unencumbered.
The strategic restructuring was made possible through a preferred stock offering that raised $225 million, initially aimed at $150 million. The overwhelming demand—an impressive $600 million—prompted the company to upscale its fundraising efforts significantly.
Following the offering, Strive directed a portion of the funds to expand its cryptocurrency portfolio, acquiring 334 Bitcoin at an average price of $89,851 per unit. This acquisition brings Strive’s total Bitcoin holdings to 13,132 BTC, valued at approximately $1.17 billion. Such a robust treasury means Strive now ranks among the top 10 corporate Bitcoin holders worldwide.
Notably, Strive has reported a remarkable Bitcoin yield of 21.2% quarter-to-date, reflecting positive growth in exposure per common share. The company has plans to eliminate the remaining $10 million of its debt early this year, potentially by leveraging existing cash reserves and further unwinding any hedging positions.
Despite these strong fundamentals, the market’s reaction to Strive’s announcements was lukewarm. ASST shares dropped 2.23% to $0.80, marking a staggering 92.4% decrease since reaching a high of $10.46 shortly after unveiling its Bitcoin treasury strategy. This decline is part of a broader trend as over 190 publicly traded companies now hold Bitcoin, collectively managing approximately 1.134 million BTC, which constitutes about 5.4% of Bitcoin’s total supply.
Corporate treasuries have become a trending approach as firms seek to bolster their balance sheets and hedge against inflation. However, the sustainability of such strategies has come under scrutiny amid market volatility. Notably, while Michael Saylor’s firm remains a dominant force, controlling nearly 63% of all corporate-held Bitcoin, many other companies have witnessed significant price corrections.
As Strive moves forward with its ambitious plans, it appears focused on solidifying its footing within the competitive cryptocurrency market, armed with a leaner balance sheet and a significant inventory of unencumbered Bitcoin assets. The next few months will be critical for the company as it aims to eliminate its remaining debt and capitalize on its Bitcoin strategy.
