Bitcoin treasury firm Strive has announced a $4 billion capital-raising plan to accelerate its BTC purchases, as reported by AMBCrypto. The firm plans to increase the size of both its $ASST and $SATA ATM programs by $2.1 billion each, reflecting sustained increase in liquidity and demand for both securities. At current prices of $70K per BTC, if the $4.2 billion capital is raised and deployed, the firm could acquire approximately 60K BTC. This would significantly scale Strive's current holdings of 16,500 BTC, potentially placing it among the top three largest Bitcoin treasury firms globally.
Strive's stock ASST slipped 2.6% on Monday and closed at $17.2 following the capital raising announcement, according to AMBCrypto. The stock dropped further by 1% to $17.0 in pre-market hours as Bitcoin prices declined. SATA's market cap has surged to $426 million, which remains relatively small compared to Strategy's STRC size of $10 billion, though the sales are specifically geared towards BTC accumulation.
The treasury segment faces uncertainty after Strategy reported its first BTC sell-off in three years worth $2.5 million, as reported by AMBCrypto. Following this move, Jeff Dorman, Arca CIO, warned that "Tiny sales today just to prep the market for bigger sales to come. $STRC, $MSTR, and $BTC cannot all win together." The Strategy sell-off triggered a 4% drop in Bitcoin and intensified pressure from short sellers attempting to break the $70K support level. Additionally, ProCap sold 52 BTC to fund its stock buyback, while French chip maker Sequans and KULR Technology dropped their BTC treasury plans, casting further doubt on the segment.
Despite recent rebalancing and shifts, overall treasury firms scaled BTC holdings by 1.8% to 1.24 million in the past thirty days, according to AMBCrypto. Strive currently ranks as the world's seventh-largest Bitcoin treasury firm with its 16,500 BTC holdings. Scaling its stash to over 50K BTC would effectively flip Metaplanet and place it in the top three positions. The firm's SATA functions similarly to Strategy's Stretch but distinguishes itself by offering a higher 13% interest rate to attract investors.
