Key Developments
- •Strive has increased its Bitcoin holdings to 5,958 BTC following a recent purchase of 72.3 BTC.
- •The acquisition was funded by proceeds from warrant exercises at an average price of $114,303 per Bitcoin.
- •The company's stock experienced a significant premarket decline of 13.5% after a prior surge of 110% over three days.
- •Strive has filed a Form S-4 for its proposed merger with Semler Scientific, aiming to bolster its Bitcoin-focused strategy.
Bitcoin Acquisition Details
Strive (NASDAQ: ASST) has acquired an additional 72.3 Bitcoin for approximately $8.26 million. This purchase utilized proceeds derived from the exercise of warrants associated with its PIPE financing. The average price paid per Bitcoin was $114,303, as detailed in an 8-K filing submitted on Tuesday.
Following this transaction, Strive's total Bitcoin reserves now amount to approximately 5,958 BTC. The cumulative cost for these holdings is $691.3 million, resulting in an average cost basis of $116,032 per coin across all its Bitcoin assets.
The purchase was funded through the exercise of approximately 6.11 million warrants at $1.35 per share. These warrants are part of the 555.3 million issued under Strive’s $750 million PIPE agreement.
Strive's strategic focus on Bitcoin has been amplified since its merger with Asset Entities in September. The company is actively pursuing corporate actions that support its objective of accumulating digital assets for the long term.
Stock Performance and Strategic Moves
Strive shares experienced a decline of 13.5% in premarket trading. This followed a substantial surge of over 110% in the preceding three trading sessions, during which the stock saw high trading volumes and significant investor interest.
As of 9:41 AM EDT, Strive was trading at $1.445, representing an 11.89% decrease for the day. This downturn is attributed to ongoing profit-taking activities after the recent sharp gains and active options trading that characterized the stock's upward movement.
In parallel with its Bitcoin strategy, Strive has filed a Form S-4 document concerning its proposed acquisition of Semler Scientific (NASDAQ: SMLR). The company stated that this transaction is intended to expand its Bitcoin strategy and enhance its capital formation capabilities.
Through its recent Bitcoin purchases and ongoing merger plans, Strive continues to solidify its position as an asset manager aligned with Bitcoin. Investors will be observing whether its significant exposure to cryptocurrency can sustain its growth trajectory or introduce increased volatility to its stock performance.