Strive has reached 43,124 BTC in total holdings following a massive October purchase, but the market is questioning the quality of its earnings and the sustainability of its 15% dividend preferred stock offering.
Strive bought 15,124 BTC in October and holds 43,124 BTC as of Oct. 30, becoming the fourth-largest publicly traded corporate holder, which is steady new demand for Bitcoin. The company may need at least another 390-877 BTC to overtake Twenty One Capital and Metaplanet, suggesting continued buying. The effect is indirect, as the purchases are already spread over October and the stock's decline shows leveraged treasury demand can cut both ways.
43,124 BTC as of Oct. 30, making it the fourth-largest publicly traded corporate Bitcoin holder.
It trails Twenty One Capital by 390 BTC and Metaplanet by 877 BTC, and its CEO said in September it could become the second-largest corporate holder by year-end, though he said that is not his base case.
Strive posted $509 million in Q3 net income, but $533.7 million of it came from unrealized Bitcoin gains, so the quality of earnings is debated. Shares fell 1.97% to $20.19 on Friday, extending a 32.15% monthly decline, showing the market is not rewarding the report. The new $609 million SATS preferred offering adds dividend costs at a 15% rate.
It reported $509 million in third-quarter net income, but that was driven largely by $533.7 million in unrealized gains on its Bitcoin holdings.
Shares fell 1.97% to $20.19 in early trading Friday, and are down 32.15% over the past month.
Strive reported $509 million in Q3 net income, though the figure was largely driven by $533.7 million in unrealized Bitcoin gains. The company added 15,124 BTC in October, bringing its total holdings to 43,124 BTC, yet investors remain skeptical as shares fell 1.97% on Friday, extending a monthly decline of over 32%.
As of October 30, Strive holds 43,124 BTC, making it the fourth-largest publicly traded corporate holder.
Investors appear concerned that the $509 million net income was driven by $533.7 million in unrealized Bitcoin gains rather than core business performance, alongside the high 15% dividend cost of its recent $609 million preferred stock offering.