Strive's Surge Amid Bitcoin Treasury Expansion

The cryptocurrency market in 2025 has witnessed a seismic shift in institutional adoption, with Bitcoin (BTC) emerging as a cornerstone of corporate treasury strategies. Companies like Strive Inc. (ASST) have capitalized on this trend, leveraging aggressive Bitcoin accumulation to drive equity valuations. However, as the market enters 2026, the sustainability of this model faces scrutiny amid structural vulnerabilities and volatile price swings.

Institutional Adoption: A New Era for Bitcoin

Institutional demand for Bitcoin has surged, driven by regulatory clarity and the maturation of digital asset infrastructure. According to a report by SSGA, 94% of institutional investors now recognize the long-term value of blockchain technology, with 68% either invested in or planning to invest in Bitcoin exchange-traded products (ETPs) by 2025. This shift reflects a broader reclassification of Bitcoin from speculative asset to strategic allocation. As of November 2025, BTC retained its dominance, controlling 65% of the global crypto market cap, further solidifying its appeal to institutional portfolios.

Strive's Bitcoin-Centric Strategy

Strive Inc. has epitomized the corporate Bitcoin accumulation trend. By November 2025, the company held 7,525 BTC, securing its position as the fourteenth-largest public corporate holder of Bitcoin. This growth was fueled by a $500 million preferred stock offering in late 2025, which enabled further Bitcoin purchases and operational expansion. The company's stock price surged 20% following the announcement, underscoring the market's appetite for Bitcoin-linked equities.

Strive's strategy extends beyond mere accumulation. The company executed a reverse merger and acquired Semler Scientific, a medical device firm with Bitcoin treasury integration, to diversify its revenue streams while maintaining a Bitcoin-centric focus. Its CEO has also lobbied index providers like MSCI to include Bitcoin-treasury companies in major benchmarks, signaling a broader push to normalize digital assets in traditional finance.

Valuation Dynamics: Momentum and Volatility

The valuation of crypto-related equities, particularly those tied to Bitcoin treasuries, has been highly sensitive to BTC price movements. Strive's stock, for instance, fluctuated dramatically in 2025, ranging from a 52-week low of $0.335 to a high of $13.42. This volatility is exacerbated by aggressive capital-raising efforts, such as Strive's preferred stock issuance, which critics argue inflates valuations beyond tangible metrics. The company's price-to-sales and price-to-tangible book ratios remain elevated, raising concerns about overvaluation.

However, the model's fragility became evident in early 2026. As Bitcoin prices fell from a peak of $126,000 to $89,000, equity premiums for digital asset treasury companies (DATs) collapsed. Nearly 40% of DATs now trade below net asset value (NAV), exposing structural weaknesses such as leverage, dilution from repeated equity financing, and overexposure to Bitcoin's price swings. This correction has forced investors to reassess the long-term viability of Bitcoin-centric equities.

Structural Challenges and Market Realities

The 2025 bull run for DATs relied on a self-reinforcing cycle of issuance and accumulation, where equity premiums funded further Bitcoin purchases. As noted by Galaxy Research, this model is only sustainable when equities trade at a premium to BTC NAV. The 2026 downturn has disrupted this dynamic, with companies like Strategy and Metaplanet facing unrealized losses and forced asset sales. Additionally, governance and liquidity concerns have intensified, as dilutive capital raises erode shareholder value.

Conclusion: Balancing Opportunity and Risk

Strive's surge in 2025 highlights the transformative potential of Bitcoin treasury strategies, particularly in an environment of growing institutional adoption. However, the subsequent market correction underscores the inherent risks of overleveraged, Bitcoin-dependent models. For investors, the key lies in distinguishing between strategic innovation and speculative excess. While Bitcoin's role in corporate treasuries is likely to persist, the sustainability of crypto-related equities will depend on robust governance, diversified revenue streams, and alignment with broader market fundamentals.