TD Cowen Raises Strive Price Target 27% After Aggressive Bitcoin Buying
Strive's Rapid Bitcoin Accumulation Surpasses Analyst Forecasts
TD Cowen raised its price target for Strive to $56 from $44 on Friday, citing the company's unexpectedly aggressive bitcoin purchases over the past two weeks.
Analysts Lance Vitanza and Jonnathan Navarrete noted that Strive bought more bitcoin in just two weeks than they had projected for the entire fourth quarter.
What Strive Bought and How Much
Strive announced a purchase of 3,311 bitcoin for $280 million on Tuesday, followed by another 2,822 bitcoin purchase on Wednesday. The company now holds 35,595 bitcoin, worth approximately $2.9 billion at current prices.
This represents an increase of nearly 7,600 bitcoin since the end of September, far exceeding TD Cowen's previous forecast of 4,750 bitcoin in purchases for the quarter.
The holdings place Strive among the top five publicly traded companies with bitcoin treasuries, just ahead of MARA's reported 35,577 bitcoin.
New Preferred Share Offering Could Fund More Purchases
Strive is expanding its SATS preferred share offering to 7 million shares at $90 each, aiming to raise $630 million. The offering is expected to close on October 20, with the company planning to set aside enough cash to cover 18 months of dividend payments.
TD Cowen believes this preferred share structure could help fund additional bitcoin purchases without adding more common shares, which could ease some investor concerns about dilution.
Stock Price and Dilution Concerns
Despite the rapid bitcoin accumulation, Strive's share price dropped 6.6% to $23.96 on Friday. The company has faced pressure from the substantial increase in diluted shares associated with warrant exercises, which has weighed on its bitcoin yield per share.
However, analysts noted that with no more $27 warrants remaining to be exercised, that dilution pressure may ease going forward. The stock remains up more than 38% for the year.
What Is Confirmed
- TD Cowen raised its Strive price target to $56 from $44
- Strive now holds 35,595 bitcoin worth roughly $2.9 billion
- The $630 million preferred share offering is expected to close October 20
- Warrant exercises have dilute shares but should ease after remaining warrants expire
Why This Matters for Bitcoin Treasuries
Strive's strategy of raising capital through preferred shares to buy bitcoin without diluting common shareholders could serve as a model for other publicly traded bitcoin treasury companies looking to expand their holdings while managing investor concerns about share dilution.
Sources
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.