Overview
- Benchmark-StoneX has initiated a "Buy" recommendation for Strive, commending its agile, debt-free approach and preferred stock offerings.
- Strive has increased its Bitcoin holdings to 19,000 BTC, valued at $1.3 billion, and has announced plans to expand its issuance program by $4.2 billion.
- Although both companies target similar investor demographics, analyst Mark Palmer described Strive and Strategy as collaborative competitors.
On Tuesday, Strive garnered positive feedback from Benchmark-StoneX analysts after the Bitcoin investment firm enhanced its cash reserves while boosting its Bitcoin inventory.
In its filing with the SEC, Strive reported acquiring 2,500 Bitcoin last week, raising its total to 19,000 BTC, which is worth $1.3 billion. Concurrently, the firm secured $44 million to guarantee dividend payments on its preferred stock.
Similar to Strategy, Strive has introduced a variable-rate financial product named SATA, which will disburse a 13% annual dividend in daily installments beginning June 16—marking it as the first publicly traded security in the U.S. to offer daily dividends, as opposed to the conventional quarterly or monthly payments.
Though it may appear that Strategy and Strive are competing for the same investor base, Benchmark-StoneX analyst Mark Palmer explained to Decrypt that the two firms actually support each other's missions, as both are focused on promoting the idea of “digital credit.”
Strive purchased an additional 2,500 $BTC for approximately $185.2 million, with an average acquisition cost of around $74,092 per Bitcoin.
STRIVE SNAPSHOT
Bitcoin holdings: 19,000
QTD BTC Yield: 23.0%
YTD BTC Yield: 36.7%
Amplification ratio: 57.0%Increased cash reserves now support an 18-month dividend reserve.$ASST $SATA pic.twitter.com/eTPHmMHBh1
— Matt Cole (@ColeMacro) June 2, 2026
“This is not a zero-sum game,” he remarked. “If more investors recognize digital credit as an appealing new asset class, it will benefit all participants in that sector.”
Benchmark-StoneX has started coverage of Strive with a “Buy” rating and a price target of $32. On Tuesday, Strive’s shares decreased by 6.6% to $16.06, influenced by market volatility partly due to Strategy’s sale of Bitcoin for the first time since 2022, according to Yahoo Finance.
Simultaneously, Strive is reinforcing its strategy. As the daily dividend payments approach, Chairman and CEO Matt Cole announced on Monday that Strive intends to enhance its issuance program, allowing for an additional $2.1 billion in both common equity and SATA.
While Strive’s Bitcoin reserves are only 2.2% of Strategy’s total, the firm’s business model “sets it apart from many other Bitcoin treasury firms that rely on convertible debt, margin financing, or ongoing common equity dilution,” the analysts noted.
The investment bank’s positive outlook is based on the absence of refinancing and collateral risks associated with SATA. Since the dividend-paying product has no maturity and circumvents margin requirements, analysts emphasized that the risks linked to Bitcoin price fluctuations—risks that could lead to “destroying shareholder value” through forced deleveraging—are significantly reduced.
SATA, similar to Strategy’s Stretch (STRC), is designed to trade close to its $100 par value. When these products trade above that value, companies can issue more preferred stocks and use the proceeds to buy additional Bitcoin.
Palmer characterized Strive as “nimble” due to its ability to quickly adapt SATA’s dividend structure, while Strategy is currently seeking shareholder approval for bi-monthly payouts.
Additionally, he pointed out that Strive has successfully eliminated all its debt, a process Strategy has indicated could take between three to six years. Just a week prior to Strategy reducing its holdings, the company cut its cash reserves by 61% to repurchase some of its debt.
In another report, the investment bank reiterated a “Buy” rating and a price target of $570 for Strategy, asserting that the market has misunderstood the company’s unusual sale of 32 Bitcoin, viewing it as a deviation from the company’s core principles.
“We believe this transaction illustrated Strategy’s capacity to fulfill obligations without significantly affecting its Bitcoin holdings,” they concluded. The expectation is for the company to continue being a substantial and proactive net buyer of Bitcoin, primarily funded through the issuance of STRC.