Nikolas Sargeant
Vivek Ramaswamy's Strive Asset Management has initiated a $500 million preferred stock offering with proceeds designated for Bitcoin acquisition, positioning the firm to expand its existing digital asset treasury as corporate adoption of cryptocurrency reserves continues gaining momentum among institutional investors.
Strive currently maintains 7,525 BTC valued at approximately $695.93 million according to BitcoinTreasuries data, ranking fourteenth among publicly traded companies holding Bitcoin on their balance sheets. The latest capital raise signals the asset manager's commitment to scaling its Bitcoin-focused treasury strategy following earlier announcements outlining aggressive accumulation targets.
According to the offering disclosure, Strive intends to deploy net proceeds "for general corporate purposes," specifically including "the acquisition of Bitcoin and Bitcoin-related products and for working capital." The company also plans to allocate funds toward unspecified income-generating assets and potential acquisitions of complementary businesses and technologies.
The move represents Strive's continued execution of a treasury strategy first unveiled in May when the firm announced Bitcoin acquisition plans through a corporate merger. Strive subsequently revealed intentions to purchase 75,000 BTC from claims associated with the defunct Mt. Gox exchange bankruptcy estate, a transaction that would have been valued at over $8 billion at the time of announcement.
Strive's approach mirrors the playbook pioneered by MicroStrategy's Michael Saylor, who transformed his business intelligence company into a Bitcoin treasury operation focused on maximizing Bitcoin holdings per share. Multiple publicly traded firms have since adopted similar strategies, using equity and debt capital markets to fund cryptocurrency purchases while maintaining core business operations.
Beyond balance sheet accumulation, Strive has emerged as an advocate for digital asset treasury companies in traditional financial markets. The firm submitted a seven-page letter to MSCI's chairman challenging the index provider's proposal to exclude digital asset treasury firms from its global equity indexes.
Strive argued the exclusion risks preventing passive investment vehicles from accessing what the company characterizes as significant growth opportunities in the evolving digital asset sector. Index inclusion carries substantial implications for corporate funding costs and investor accessibility, as passive funds tracking major indexes represent trillions in allocated capital.
Market reaction to Strive's Bitcoin strategy has been mixed. The company's stock, trading on NASDAQ under ticker ASST, rose 3.57% to $1.12 in Tuesday trading before retreating to $1.02. Over the past 52 weeks, shares have fluctuated between a high of $13.42 and a low of $0.34, reflecting significant volatility as investors assess the firm's pivot toward cryptocurrency treasury operations.
The preferred stock offering adds Strive to a growing roster of companies leveraging capital markets to fund Bitcoin purchases. The strategy has gained traction as Bitcoin's institutional acceptance has expanded, though critics question the financial wisdom of converting shareholder equity into volatile digital assets without corresponding revenue generation.
