Strive (ASST) Adds 21 Bitcoin As Treasury Reaches 19,921 BTC And Raises Capital To $157 Million
Strive, Inc. bought 21 bitcoins between July 13 and July 17 at an average price of about $63,221 per coin, a purchase of about $1.3 million, according to an 8-K filing with the Securities and Exchange Commission on Monday.
The purchase lifted the Dallas-based treasury firm’s bitcoin holdings from 19,900 to 19,921 BTC. Strive funded the acquisition as its balance sheet gained ground: cash and cash equivalents rose $3.3 million to $157.4 million as of July 17, from $154.1 million the previous week.
The modest addition marks a step away from the pace that brought the company past 19,000 BTC in the spring. Strive (Nasdaq: ASST) trades under the ticker Class A alongside its Variable Value Series A Perpetual Preferred Stock, listed as SATA.
Class A shares outstanding increased to 73,869,961 from 73,426,164, a gain of 443,797 reflecting issuance under the company’s market plan. Class B shares decreased by 3,335 to 9,800,012, and the SATA count was held at 7,829,502.
The filing detailed Strive’s position in the Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC. Strive held 505,000 shares of STRC on both reporting dates, though the fair value of that stake fell $1.1 million to $43.1 million as of July 17th.
Try: Buying bitcoin ‘hand over fist’
Chief executive Matthew Cole signed the report. Cole cast Strive as an avid consumer, a situation he summed up in a pledge to keep buying a “handful” of bitcoin. The company is funding its fundraising with perpetual preferred equity instead of revolving debt, a structure Cole devised as a defense against a forced sale.
Strive’s rise follows the merger. The company went public with a combination of Strive Asset Management and Asset Entities, and built a bitcoin treasury from the ground up. It expanded that base with the acquisition of Semler Scientific, an all-stock deal that folded the medical technology company and its bitcoin into Strive. Shareholders approved the Semler sale, which closed in January and pushed the combined holdings past 12,000 BTC.
The average cost of the latest purchase, about $63,221 per coin, remains below the levels Strive has paid in all of its previous accumulations. Purchases add to the treasury created by the combined costs that managers have tied up in long-term assets.
Growth comes at a cost. Strive reported a loss of $393 million in its first six months as a public company, a figure tied to the accounting management of its bitcoin position and its share issuance. The administration has pointed to a big goal, with an eye on a war chest of $ 4.2 billion to finance another purchase of bitcoin.
The company’s model issues shares on the open market and converts the money into bitcoin at a rapid clip, a design intended to maximize bitcoin exposure per share while limiting dilution. Fight for parity among the top ten bitcoin owners, the field Strategy leads with 843,775 BTC.
The filing contains the usual caution on forward-looking statements, with flags on risks tied to the Semler merger, digital asset volatility, interest rates, and dilution from ongoing share sales. The company said it may adjust the SATA dividend rate, a lever the company has as it controls its preferred stock.
