Strive Raises $500 Million for Bitcoin Treasury Expansion

Strive Asset Management is launching a $500 million stock sale to expand its Bitcoin holdings, drawing inspiration from Michael Saylor’s MicroStrategy model. The preferred stock program, “Strive SATA,” funds further Bitcoin acquisitions with a 12% dividend payout.

Strive Asset Management, led by Vivek Ramaswamy, has initiated a $500 million stock sale to expand its Bitcoin treasury, citing MicroStrategy as a model.

The event underlines Strive’s significant shift towards adopting a Bitcoin-centric strategy, affecting investor perceptions and market dynamics.

Strive’s New Initiative

Strive Asset Management, under the leadership of Executive Chairman Vivek Ramaswamy, plans to raise up to $500 million through a preferred stock at-the-market (ATM) program to expand its Bitcoin treasury. The company aims to emulate MicroStrategy’s strategy, as detailed in their investor materials. Strive’s initiative involves issuing Series A Cumulative Redeemable Preferred Stock called “Strive ATA,” which offers a 12% dividend and is listed on Nasdaq. This move is designed to finance further Bitcoin purchases, fortifying its position as a Bitcoin treasury company.

Impact on the Bitcoin Market

The decision significantly impacts the Bitcoin market by increasing demand and drawing parallels with MicroStrategy’s levered BTC balance-sheet model. Financially, Strive’s approach introduces a fixed-income-like capital source for purchasing Bitcoin, influencing corporate and investor strategies intertwined with Bitcoin. Regulatory-wise, this mirrors existing securities protocols instead of introducing new crypto-specific regulations. As Strive accelerates its Bitcoin acquisitions, potential outcomes include heightened corporate BTC concentration, affecting market liquidity and valuation dynamics. These shifts highlight an ongoing trend of corporations leveraging capital to reinforce their Bitcoin holdings, with MicroStrategy as a precedent.