Strive has expanded its bitcoin reserves to 43,000 BTC after investing approximately US$ 511.4 million in the purchase of 6,182 units of the cryptocurrency. The acquisitions took place between October 17 and 23 and were disclosed this Monday (26) in a document filed with the U.S. Securities and Exchange Commission (SEC).
The company, traded on Nasdaq under the ticker ASST, paid an average of US$ 82,732 per bitcoin, including fees and expenses. With the transaction, its reserves grew nearly 17% in a week, from 36,818 to 43,000 BTC.
The purchase placed Strive among the four largest publicly traded companies holding bitcoin, behind Strategy, Metaplanet and Twenty One Capital, according to data from Bitcoin Treasuries.
The growth in reserves, however, comes at a time of portfolio depreciation. In the prospectus disclosed on October 26, Strive reported that its bitcoins had an accumulated cost of US$ 3.8 billion, but a market value of approximately US$ 3.5 billion on October 23.
The difference of about US$ 300 million reflects the decline in value relative to the acquisition cost. The average price of the entire portfolio is US$ 87,785 per bitcoin, above the US$ 82,732 paid in the most recent purchase.
Strive prepares new capital raise of up to US$ 1 billion
In addition to expanding its reserves, the company announced a program that allows it to raise up to US$ 1 billion through the gradual sale of SATS preferred shares.
The proceeds may finance new bitcoin acquisitions, working capital and other corporate needs. The program does not obligate the company to sell the entire authorized amount, nor does it guarantee that the capital raise will be completed.
The initiative follows the initial offering of 7 million SATS preferred shares, which closed on October 20 and generated approximately US$ 630 million in gross proceeds. The securities carry cumulative dividends of 15% per year on the par value of US$ 100 per share, subject to the payment conditions set forth in the issuance.
Even after the purchase of more than half a billion dollars in bitcoin, Strive reported that its cash and equivalents increased from US$ 317.5 million to US$ 504.4 million between October 16 and 23.
The combination of new share issuances and bitcoin purchases is part of the company's reserve expansion strategy. The model, however, keeps its results exposed to the cryptocurrency's fluctuations and to the costs of dividends associated with raising capital.
