TD Cowen has raised its price target on Strive, Inc. to $56 from $44 after the company increased its Bitcoin treasury to 35,595 BTC, a pace of buying that exceeded the firm’s projection for the entire fourth quarter in roughly two weeks.
The brokerage’s analysts, Lance Vitanza and Jonnathan Navarrete, said Strive’s latest purchases materially changed their expectations for the company’s Bitcoin accumulation strategy. Strive held about 28,000 BTC at the end of September, meaning it has added roughly 7,600 BTC since then. TD Cowen had previously forecast that the company would acquire 4,750 BTC during the full fourth quarter.
At the Bitcoin price cited in the report, Strive’s holdings were worth approximately $2.9 billion. The company now ranks as the fourth-largest public corporate holder of Bitcoin, according to the figures supplied by TD Cowen.
Two disclosures added more than 6,100 BTC
The increase was driven in part by two recent purchase announcements. Strive disclosed the acquisition of 3,311 BTC on Tuesday, followed by another 2,822 BTC on Wednesday. Together, those purchases accounted for 6,133 BTC, or more than 80% of the increase from its reported September balance.
The company paid roughly $235 million for its latest disclosed block of Bitcoin, implying an average purchase price of about $83,266 per coin. That figure provides a clearer indication of the price levels at which Strive has been willing to deploy capital into its treasury strategy, though the eventual value of the holdings remains closely tied to Bitcoin’s market price.
Corporate Bitcoin treasuries have become increasingly sensitive to the structure of their funding. A company can add Bitcoin rapidly through common-stock issuance, convertible securities, debt, retained cash, or preferred shares, but each option carries different consequences for shareholders and the company’s balance sheet. Strive’s recent financing plan places more emphasis on preferred equity rather than further common-stock issuance.
Preferred offering targets $630 million
Strive increased its offering of SATS preferred shares to 7 million shares priced at $90 each, targeting gross proceeds of $630 million. The offering was expected to close on Oct. 20, according to the company.
Strive said it intends to retain sufficient cash to cover 18 months of preferred-dividend payments. That reserve is relevant because preferred dividends create a recurring obligation that sits ahead of common shareholders in the capital structure. The company’s ability to fund those payments without selling Bitcoin or raising additional capital would shape how durable the strategy proves during a prolonged market downturn.
The preferred shares carry a 15% annual payout calculated from a $100 stated value, based on the terms described in the supplied material. By issuing preferred securities at $90 rather than selling additional common stock, Strive could raise funds for Bitcoin purchases while limiting direct dilution for existing ASST shareholders.
TD Cowen said that financing approach could support further Bitcoin acquisitions without requiring another immediate common-share offering. The distinction matters for a treasury company whose market valuation is influenced by both the size of its Bitcoin holdings and the number of shares through which those holdings are divided.
Warrant exercises weighed on ASST shares
The accelerated Bitcoin buying has coincided with pressure on Strive’s common shares. ASST fell 6.6% to $23.96 on Friday, although the stock remained more than 38% higher year to date, according to the material supplied.
TD Cowen linked part of the share-price pressure to an increase in Strive’s share count following warrant exercises. When warrant holders exercise their rights to buy stock, the company issues additional common shares, increasing the total number outstanding. For companies valued partly on a Bitcoin-per-share basis, a fast-rising share count can dilute the benefit of a larger treasury unless Bitcoin holdings expand at least as quickly.
The analysts also pointed to the absence of remaining $27 warrants as a factor that could ease one source of selling pressure. That does not eliminate the risks associated with additional financing or future common-share issuance, but it reduces the overhang from that particular group of exercisable warrants.
Strive’s recent activity illustrates the trade-off facing companies that adopt Bitcoin as a core treasury asset. Buying more coins can increase a company’s exposure to Bitcoin’s upside, but the method used to fund those purchases determines whether common shareholders receive the full benefit. Preferred stock can preserve common equity more effectively than issuing new shares, though it adds dividend obligations that must be met regardless of Bitcoin’s short-term performance.
Bitcoin per share becomes the central measure
The scale of Strive’s purchases has moved the focus beyond the headline value of its treasury. With 35,595 BTC, the company has established a larger reserve than TD Cowen expected at this stage of the quarter. The next question for the market is whether the company can continue increasing its Bitcoin holdings on a per-share basis while servicing its preferred dividend commitments and managing its capital structure.
That calculation may carry more weight than the raw size of the treasury. A larger Bitcoin balance financed through substantial common-stock dilution can produce a weaker outcome for existing shareholders than a smaller balance financed through less dilutive instruments. Strive’s SATS offering gives it another route to fund purchases, but it also raises the cost of maintaining the strategy if market conditions weaken.
For now, TD Cowen’s higher $56 target reflects a view that Strive’s Bitcoin accumulation has outpaced prior expectations. The company’s ability to sustain that pace will depend on whether it can turn the preferred-share proceeds into additional Bitcoin exposure without allowing financing costs and share-count changes to erode the value of those holdings per common share.
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