Strive launches $500M preferred stock sale to buy more Bitcoin
Strive Asset Management announced a $500 million preferred stock offering to raise funds for additional Bitcoin purchases, working capital, share repurchases and acquisitions of income-generating assets. The firm — co-founded by Vivek Ramaswamy and which shifted to a Bitcoin-treasury strategy via a 2025 reverse merger — currently holds 7,525 BTC (about $695m) and manages over $2 billion in AUM since launching an ETF in 2022. Strive stated proceeds will be used for “general corporate purposes,” explicitly including Bitcoin and related products. The move echoes a treasury-led accumulation model that uses equity issuance to buy BTC. The announcement follows Strive’s public opposition to MSCI’s proposal to exclude companies with crypto treasuries exceeding 50% of assets from major indices, a change that could prompt significant passive outflows from index-tracking funds starting February 2026. Traders should note that a full deployment of the $500m into BTC would materially expand Strive’s holdings and concentrate corporate demand; market reaction to similar equity-funded Bitcoin acquisitions has varied, with some treasury-style listings seeing sharp share volatility on debut.
Bullish
Direct corporate demand for Bitcoin is bullish for BTC price. Strive’s $500M preferred stock offering explicitly lists Bitcoin and related products among uses of proceeds; if a large portion is deployed into BTC, that increases buy-side pressure and tightens available supply. Strive already holds 7,525 BTC and manages over $2bn AUM, so sizable additional purchases would be market-relevant. The move also signals that equity issuance remains a viable on‑rampto accumulate BTC — potentially encouraging similar corporate treasury strategies. Countervailing factors include potential share-price volatility for issuers, uncertain deployment timing (proceeds may be used for other corporate purposes), and the MSCI index debate: if MSCI exempts high-crypto-treasury firms from major indices, passive flows could reverse and create selling pressure for equities (not BTC directly) starting Feb 2026. Overall, the immediate price impact on BTC is likely positive (short-term buy pressure) and supportive longer term by concentrating corporate demand, though actual magnitude depends on how much of the $500M is allocated to Bitcoin and market liquidity at execution.