Strive Asset Management has announced a $500 million preferred stock offering intended to fund additional Bitcoin purchases and support its corporate needs. The publicly traded asset manager stated that the net proceeds from the offering will be allocated to general corporate purposes, which include the acquisition of Bitcoin (BTC) and Bitcoin-related products, as well as working capital. The firm also disclosed plans to purchase income-generating assets to expand business operations, though specific asset classes were not identified.
Co-founded in 2022 by American entrepreneur and politician Vivek Ramaswamy, Strive pivoted to a Bitcoin treasury strategy earlier this year through a public reverse merger. This strategic shift reoriented the company's balance sheet toward long-term Bitcoin accumulation. Strive currently holds 7,525 BTC on its balance sheet, positioning it as the 14th-largest corporate holder of Bitcoin globally, according to company disclosures.
This strategy bears resemblance to the model developed by Michael Saylor and Strategy, which has also pursued Bitcoin acquisition through debt and equity financing. Strive’s Bitcoin holdings saw a significant expansion in September when the firm agreed to acquire Semler Scientific. This transaction positioned the combined entity among the largest corporate Bitcoin holders worldwide.
Strive shares experienced a rise following the announcement of the stock sale. Market data indicates that the stock has more than doubled in value since the beginning of the year.
Strive's Stance on MSCI Index Exclusion Debate
The firm has become actively involved in discussions concerning the treatment of digital asset treasury companies within major stock indices. Earlier this month, Strive CEO Matt Cole publicly commented on MSCI’s ongoing consultations with institutional investors. These consultations are focused on whether to exclude digital asset treasury companies that hold more than 50% of their balance sheet in cryptocurrencies. Cole stated that such exclusions could lead to distorted capital allocation and limit investor choice, according to public statements made by the CEO.
MSCI's review has the potential to impact index funds and exchange-traded funds that track its benchmarks, which could influence billions of dollars in passive capital flows.
Strive Asset Management's Growth and Bitcoin Treasury Model
Since launching its first exchange-traded fund in August 2022, Strive Asset Management has grown to oversee more than $2 billion in assets under management, according to company data. It is important to note that, unlike spot Bitcoin ETFs which offer direct price exposure, Bitcoin treasury companies typically employ strategies such as balance sheet leverage, equity issuance, and acquisitions. These methods can amplify both potential gains and losses.
Analysts suggest that if fully deployed toward Bitcoin purchases, the $500 million stock sales program could substantially increase Strive’s BTC holdings.