TD Cowen lifted its price target on Strive (NYSE: ASST) to $56 from $44 on Friday after the company picked up the pace on Bitcoin buying in a big way over the past two weeks. Analysts Lance Vitanza and Jonnathan Navarrete said the buying rate had blown past what they first expected for the fourth quarter.
That target bump works out to 27%.
Bitcoin holdings rose from 28,000 BTC to 35,595 BTC
Strive’s Bitcoin stash grew from 28,000 BTC at the end of September to 35,595 BTC. At current prices, that Bitcoin treasury is worth roughly $2.9 billion.
The almost 7,600 BTC added in two weeks had already topped TD Cowen’s earlier high-end estimate of 4,750 BTC for all of Q4.
Two big buys pushed that jump:
- On Oct. 13, Strive said it bought 3,311 BTC for about $280 million, its biggest single purchase since January this year.
- On Oct. 14, the company revealed another 2,822 BTC buy worth about $235 million in a separate SEC 8-K filing.
Strive moved ahead of MARA Holdings
With those latest purchases, Strive moved into the No. 4 spot among U.S.-listed companies holding Bitcoin. Based on data cited from Bitcointreasuries.net, its 35,595 BTC holding is larger than the 35,577 BTC publicly reported by MARA Holdings.
The report also said Michael Saylor had applauded Strive’s buying speed on X.
Warrant exercise added dilution pressure
TD Cowen said the company’s fast Bitcoin buildup came at a price. The report said heavy exercise of $27 warrants sharply increased the common share count and put dilution pressure on the stock.
The analysts wrote: "Even though BTC accumulated quickly, the substantial increase in share count tied to warrant exercises pushed down BTC Yield."
ASST dropped 6.6% on Friday and finished at $23.96. But the stock is still up more than 38% for the year.
According to the analysts, some investors may have dumped shares right after getting stock through warrant exercises. Now that the $27 warrants have been fully exercised, that dilution pressure could start to ease.
Preferred stock deal targets $630 million
Strive is also pressing ahead with another capital raise. The company plans to expand its SATS preferred stock offering to 7 million shares at $90 each, aiming for $630 million.
Per a GlobeNewswire announcement, the offering is expected to close on Oct. 20.
Strive said part of the proceeds will be held back to cover dividend payments over the next 18 months. The rest is earmarked for more Bitcoin purchases. And because this deal uses preferred stock instead of common shares, it would not add more dilution for existing common shareholders.
TD Cowen said if the preferred offering closes, Strive would have a steadier source of funding for ongoing Bitcoin accumulation, cutting its need to lean on warrants or common stock issuance.