TD Cowen Raises Strive's Price Target on Aggressive Bitcoin Accumulation
Bitcoin treasury company Strive (ASST) has received a significant vote of confidence from Wall Street. Analysts Lance Vitanza and Jonnathan Navarrete at TD Cowen have raised their price target for the company from $44 to $56. This reassessment is primarily driven by Strive's recent, substantial Bitcoin purchases, which have far exceeded quarterly expectations in just a two-week period.
Holdings Surge to 35,595 BTC, Ranking Fourth Among Public Companies
Strive's Bitcoin holdings have seen a dramatic increase, climbing from 28,000 BTC at the end of September to 35,595 BTC by mid-October. At current market prices, this stash is valued at approximately $2.9 billion.
This accumulation propels Strive to the fourth position among public companies globally in terms of Bitcoin holdings, slightly edging out the reported balance of mining firm MARA. The most notable activity occurred on October 13th and 14th, where Strive purchased 3,311 BTC (~$280 million) and 2,822 BTC (~$235 million), respectively. TD Cowen analysts noted that the buying spree over these two weeks alone surpassed their forecast for the entire quarter.
Near-Term Pressure vs. Long-Term Growth Thesis
Despite the positive analyst action, Strive's stock faced selling pressure recently. Shares fell 6.6% this past Friday, closing at $23.96. Market observers attribute this primarily to temporary dilution from warrant exercises.
However, taking a longer-term view, Strive's stock remains up over 38% year-to-date. The TD Cowen report suggests a bullish outlook, anticipating that selling pressure will subside as warrants with a $27 exercise price are fully converted, allowing the stock price to better reflect the company's fundamental value.
Funding Initiative and Strategic Reserves
To fuel its ongoing digital asset strategy, Strive is also making moves on the capital front. The company has increased the size of its SATS preferred share offering to 7 million shares, priced at $90 per share. This initiative aims to raise approximately $630 million, with completion expected around October 20th.
A key aspect of this fundraising is the company's plan to reserve cash for up to 18 months of dividend payments. This indicates a balanced approach by management, coupling aggressive expansion with financial prudence and shareholder returns, thereby securing ample liquidity for future operations and potential additional asset allocation.