Strive’s Significant Bitcoin Investment
Strive, a publicly listed firm specializing in financial services, announced a substantial increase in its Bitcoin investments, now valued at over $1.1 billion. This achievement places Strive among the top ten publicly traded entities holding Bitcoin, as reported on Wednesday. The company purchased 333.89 Bitcoins at an average cost of $89,851, raising its total Bitcoin assets to 13,131.82 BTC.
Debt Reduction and Strategic Focus
Additionally, Strive revealed that it has eliminated 92% of the debt incurred from its recent acquisition of Semler Scientific, a company renowned for its innovative medical technologies and its strategic focus on Bitcoin as part of its treasury portfolio. The firm’s chairman, Matt Cole, emphasized the rapid progress in their operational strategy, stating:
“Strive continues to exhibit exceptional execution in maintaining a premier, Bitcoin-centric treasury. We settled over 90% of Semler’s legacy debt merely 11 days post-acquisition and intend to settle the remaining balance by April.”
He underscored the company’s commitment to aligning Bitcoin financing appropriately with long-term financial strategies.
Acquisition and Financial Positioning
The acquisition of Semler, officially sanctioned by its shareholders just a fortnight ago, merged its 5,048 BTC holdings with Strive’s assets, following a tumultuous period that saw share prices drop for both firms. In a bid to further solidify their financial position, Strive also announced the successful closing of a 1.3 million share follow-on offering for its preferred stock, SATA, which was priced at $90 per share. This offering drew over $600 million in demand, indicating strong investor interest. Ben Werkman, Chief Investment Officer, highlighted this success as a testament to the growing appetite for digital assets and the Strive team’s efficient execution of its strategy.
Company Background and Market Performance
Founded by Vivek Ramaswamy, a previous candidate for Ohio governor, Strive greatly expanded its Bitcoin holdings following a substantial $750 million fundraising endeavor in May. Furthermore, Strive had previously urged GameStop to integrate Bitcoin into its financial strategies, a recommendation that was also acted upon in May.
Despite these developments, Strive’s shares (ASST) have seen a decline of about 1.5% since the market opened on Wednesday and have dropped nearly 10% this week, trading at approximately $0.80. Over the past six months, the company’s stock has plummeted by over 78%.
