StoneX raises Strive price target to $43 on fresh Bitcoin purchases and preferred share deal
StoneX raises its Strive price target
StoneX has raised its price target for Strive, a public company that holds bitcoin as its main corporate asset, to $43 from $32, a 34% increase. The analyst firm also repeated its Buy rating on Strive's common stock, ASST.
StoneX analyst Mark Palmer gave a Monday research report, saying the change reflects a better outlook for Strive's bitcoin buying plan. The main drivers were a new preferred stock sale and a large fresh bitcoin purchase.
What Strive did recently
Strive said on Monday that it bought 6,182 bitcoin between October 17 and October 23, bringing its total holdings to about 43,000 BTC. That placed it fourth among public companies holding bitcoin, according to Bitcointreasuries data.
Around the same time, Strive closed an upsized initial public offering of 7 million shares of its 15% SATS preferred stock, raising $630 million in gross proceeds. Strive's earlier traditional warrants expired during that week, too.
What the analyst sees
Palmer called the preferred stock sale and the warrant expiration a "clean reset" of the company's capital structure. He said it supports Strive's model of holding bitcoin entirely through preferred shares.
Preferred stock here means a share class that usually pays a fixed dividend and ranks ahead of common stock if a company runs into trouble. SATS pays a 15% annual dividend, and Strive has set aside enough to cover the first 18 months of payments. Its earlier preferred series, called SATA, is a variable-rate perpetual preferred stock.
Palmer said SATS sits below SATA in priority, so each dollar it raises adds assets without adding claims ahead of the senior preferreds. He added that Strive has now shown it can run two preferred share classes side by side for different kinds of income-focused investors.
Market reaction
Strive's ASST shares fell 9.15% on Monday to close at $26.32. That means StoneX's new $43 target sits about 63% above the closing price.
What is confirmed
- StoneX raised its Strive price target to $43 from $32 and kept a Buy rating.
- Strive added 6,182 BTC from October 17 to October 23, for total holdings of 43,000 BTC.
- Strive raised $630 million gross from an upsized IPO of 7 million shares of 15% SATS preferred stock.
- ASST shares fell 9.15% on Monday, closing at $26.32.
What is still unclear
- The sources do not state exactly when StoneX sent the updated report to clients beyond calling it a Monday report.
- The sources do not say whether StoneX has a firm date for reviewing its Strive target again.
Where the sources come from
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.