Strive, the Bitcoin-focused asset manager, is doubling down on its strategy. The firm expanded its Bitcoin holdings to 19,000, worth $1.3 billion, and announced plans to increase an issuance program by $4.2 billion.
The company purchased 2,500 Bitcoin last week at an average cost of $74,092. At the same time, Strive raised $44 million to ensure dividends on its preferred stock can be paid.
Strive is launching SATA, a first-of-its-kind security in the U.S. that pays daily dividends-starting June 16-offering an annual 13% return. This contrasts with traditional quarterly or monthly distributions.
Benchmark-StoneX analysts initiated coverage with a "Buy" rating and a $32 price target. They praised Strive's "nimble" debt-free framework, which avoids the refinancing and collateral risks of convertible debt.
Analyst Mark Palmer described Strive and Strategy as friendly rivals, not competitors. "This is not a zero-sum game," he said. "If more investors see digital credit as attractive, it benefits all participants."
The investment bank also reiterated a "Buy" rating for Strategy, arguing the market overreacted to its first Bitcoin sale since 2022-just 32 BTC. They expect Strategy to remain a significant net buyer.
While Strive's Bitcoin stockpile is only 2.2% of Strategy's, its model eliminates forced deleveraging risks tied to Bitcoin price downturns, a key differentiator.