Strive’s Bitcoin Holdings Surge: TD Cowen Raises Share Price Target Amid Financing Plans

Strive’s Bitcoin Holdings Surge, TD Cowen Raises Price Target Amid Financing Plans

October 16, 2023

Strive, the Bitcoin treasury company, is making waves on Wall Street as its rapid acquisition strategy has propelled its holdings to an impressive 35,595 BTC. This surge has caught the attention of analysts at TD Cowen, who have raised their share-price target for Strive from $44 to $56, reflecting optimism about the company’s aggressive buying spree.

In just a matter of weeks, Strive has amassed thousands of BTC, significantly surpassing earlier expectations from market analysts. This strategic accumulation positions Strive among the larger corporate holders of Bitcoin, although it still trails behind industry leader Strategy.

A Growing Treasury Needs Funding

To support its ambitious growth, Strive is seeking substantial financing through a preferred stock offering. The company has announced plans to issue seven million shares at a price of $90 each, potentially generating around $630 million in gross proceeds before expenses. This move aims to raise capital without the immediate dilution that comes with issuing common shares, although it introduces ongoing costs in the form of preferred dividends.

Strive’s recent purchases have been pivotal, including a notable acquisition that pushed its treasury above 26,000 BTC. As the company continues to expand its Bitcoin holdings, the focus now shifts to how it will finance this growth.

Bitcoin Per Share Is The Real Test

While a rising BTC balance is promising, it does not guarantee benefits for existing shareholders if the company simultaneously increases its share count or incurs costly financing obligations. Investors are urged to evaluate Strive’s Bitcoin holdings in conjunction with its capital structure to understand the potential impact on shareholder value.

TD Cowen’s revised price target reflects a positive outlook on Strive’s execution, but it remains an analyst’s opinion rather than a definitive forecast. The upcoming financing and treasury disclosures will be crucial in determining whether Strive can maintain its momentum in increasing Bitcoin exposure while ensuring economic viability for its shareholders.

As Strive navigates this pivotal moment, all eyes will be on its next moves in the ever-evolving landscape of cryptocurrency investment.

Written by the News Desk and edited by Samuel Rae.