TheBlock
StoneX raised its price target for bitcoin treasury company Strive to $43 from $32, citing a stronger outlook for its BTC accumulation strategy. Senior Equity Research Analyst Mark Palmer reiterated a Buy rating in a Monday report. Strive's ASST shares fell 9.15% to close at $26.32, leaving the new target 63% above the stock's current price.
Why it matters
Strive raised $630 million in gross proceeds through an upsized offering of 7 million shares of its 15% SATS preferred stock. The company's traditional warrants also expired during the same week, creating what Palmer described as a clean reset of its capital structure.
The strategy relies on perpetual preferred equity to finance Bitcoin acquisitions. SATS adds a second preferred instrument alongside SATA, the earlier variable-rate Series A perpetual preferred stock. SATS carries a 15% annual dividend, with Strive setting aside enough to cover the first 18 months of payments.
Market impact
Palmer said SATS should benefit SATA holders because it ranks below SATA in priority. That means capital raised through SATS adds assets without adding claims ahead of the senior preferred shares, according to the analyst.
Strive purchased 6,182 BTC between Oct. 17 and Oct. 23, bringing its total holdings to 43,000 BTC. Bitcointreasuries data ranked the company fourth among public corporate Bitcoin holders. The new price target puts the market focus on whether Strive can continue expanding its BTC holdings through preferred-equity financing while supporting its dividend obligations.
Frequently asked questions
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Why did StoneX raise its Strive price target?
StoneX raised the target to $43 from $32 because it sees a stronger outlook for Strive's BTC accumulation strategy. Analyst Mark Palmer also reiterated a Buy rating.
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How much BTC does Strive hold after its latest purchase?
Strive purchased 6,182 BTC between Oct. 17 and Oct. 23, bringing its total holdings to 43,000 BTC.
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How did Strive fund its latest Bitcoin strategy?
Strive raised $630 million in gross proceeds through an upsized offering of 7 million shares of its 15% SATS preferred stock.
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What is the relationship between SATS and SATA?
SATS is a newer preferred instrument that ranks below SATA in priority. StoneX said this adds assets without adding claims ahead of SATA holders.
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What dividend does SATS pay?
SATS carries a 15% annual dividend. Strive has set aside enough to cover the first 18 months of payments.
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