Why Strive is making a $4.2B Bitcoin bet despite growing scrutiny

Bitcoin treasury firm Strive has announced a $4 billion capital‑raising plan to accelerate its BTC purchases. Furthermore, Strive CEO Matt Cole stated:

Strive expects to increase the size of both the $ASST and $SATA ATM programs by $2.1 billion each, reflecting a sustained increase in liquidity and demand for both securities.

This meant the firm would increase the sale of its primary stock, ASST, and its preferred stock, SATA, to raise $4.2 billion. For those unfamiliar, Strive’s SATA functions like Strategy’s Stretch [STRC] but distinguishes itself by offering a higher 13% interest rate to attract investors. 

At press time, SATA’s market cap has surged to $426 million, which is relatively small compared to Strategy’s STRC size of +$10 billion. However, the sales are geared towards BTC accumulation. 

At current prices of $70K per BTC, if the $4.2B capital is raised and deployed, the firm could acquire about 60K BTC. 

Strive is the world’s seventh-largest Bitcoin treasury firm, with 16,500 BTC. Scaling its stash to over 50K BTC would effectively flip Metaplanet and place it in the top three. 

The firm’s stock ASST slipped 2.6% on Monday and closed at $17.2 after the update. It dropped even further by 1% to $17.0 in pre-market hours as BTC slipped lower. 

Strategy’s $2.5M BTC sell-off triggers treasury firm scrutiny

Even so, there has been negative sentiment across X (formerly Twitter) against BTC treasury firms. On the 1st of June, Strategy reported that it sold $2.5 million BTC for the first time in three years. 

Following the move, Jeff Dorman, Arca CIO, reiterated his previous warning, noting that,

Tiny sales today just to prep the market for bigger sales to come. $STRC, $MSTR, and $BTC cannot all win together. Just foreshadowing today that someone is going to lose here at the expense of the others.

Although some framed the Strategy sell‑off as a tax‑harvesting move, the update still triggered a 4% drop in BTC. At the same time, short sellers intensified pressure by attempting to break the $70K support level. Additionally, ProCap, another treasury firm, also sold 52 BTC to fund its stock buyback and boost its mNAV (market-to-net asset value). 

Recently, French chip maker Sequans and KULR Technology also dropped their BTC treasury plans, further casting doubt on the segment. Despite the rebalancing and shifts, overall treasury firms scaled BTC holdings by 1.8% to 1.24 million in the past thirty days.

Final Summary

• Strive is upping its BTC bet with a $4.2 billion capital war chest 
• Analysts warned that Strategy’s sell-offs could intensify in the coming weeks