Bitcoin News Today: Strive Fuels Bitcoin Buyout With $500M Preferred Stock Raise

Strive Asset Management: A Strategic Bet Amid Market Downturn

Strive Asset Management has launched a $500 million at-the-market offering to raise capital for Bitcoin purchases. The firm, co-founded by Vivek Ramaswamy, unveiled plans to use the proceeds for general corporate needs, including acquiring Bitcoin and Bitcoin-related assets. This move comes as the firm's existing Bitcoin holdings face an 18% unrealized loss due to recent market volatility.

The offering involves the issuance of Variable Rate Series A Perpetual Preferred Stock (SATA), with an initial dividend yield of 12%. Proceeds will also cover working capital, income-generating asset purchases, potential share repurchases, and debt repayment. Strive currently holds 7,525 BTC, making it the 14th largest public holder of Bitcoin.

The company's average acquisition cost for Bitcoin is $113,383 per BTC, while current market valuations place the holdings at $699.81 million. This results in an unrealized loss of approximately $153 million. Despite the downturn, Strive remains committed to expanding its Bitcoin holdings.

A Strategic Bet Amid Market Downturn

Strive has purchased Bitcoin three times in 2025, with the most recent acquisition of 1,567 BTC in early November. The firm's aggressive buying strategy contrasts with the broader market, which has seen Bitcoin trade below $100,000 for much of November. At the time of writing, Bitcoin was trading at $92,377, showing a modest 2.42% increase in the last 24 hours.

This capital-raising effort mirrors the strategy pioneered by Michael Saylor's company, Strategy. Strive aims to leverage capital markets to increase its BTC reserves while maintaining a focus on Bitcoin per share and using the cryptocurrency as a hurdle rate for capital deployment.

Pressure From Index Providers

Strive is not the only company facing challenges. Digital asset treasury (DAT) firms, including Metaplanet, GD Culture Group, and Remixpoint, are also sitting on significant unrealized losses. The market's recent volatility has accelerated losses for these firms, prompting some to reassess their long-term strategies.

In a broader regulatory shift, MSCI proposed that firms holding digital assets exceeding 50% of total assets be reclassified as "funds." This change could remove DAT firms from MSCI benchmarks, potentially triggering large-scale passive-index outflows. Strive has submitted a letter to MSCI urging reconsideration, arguing that excluding such firms would hinder investor access to high-growth sectors.

A High-Yield Preferred Stock Offering

To fund its Bitcoin expansion, Strive has opted for a preferred stock offering rather than dilutive common equity. The SATA shares offer a 12% annual dividend, payable monthly, and are modeled after similar structures used by Strategy. This structure allows Strive to raise capital without significantly diluting existing shareholders.

The firm plans to maintain the stock's trading range between $95 and $105 per share by adjusting dividend rates within set limits. This flexibility is intended to stabilize investor interest and maintain the stock's appeal in a volatile market.

What This Means for Investors

The offering has been well-received by the market, with Strive's Class A common stock (ASST) climbing 3.6% on Tuesday to $1.02. The SATA preferred shares have also seen gains, rising 0.088% to $91.15. Investors view the move as a sign of confidence in Bitcoin's long-term potential despite short-term volatility.

However, some analysts remain cautious. The firm's strategy requires continuous access to capital markets, and any disruption in market conditions could affect its ability to acquire more Bitcoin. The MSCI decision on January 15, 2026 will also play a critical role in shaping the regulatory environment for DAT firms.

As Strive continues its aggressive Bitcoin accumulation strategy, it remains to be seen whether the market will continue to support its approach or whether regulatory shifts will force a recalibration of its long-term plans.