StoneX raises Strive price target 34% after new preferred stock offering

what happened

StoneX has increased its price target on bitcoin treasury company Strive (ASST) to $43 from $32, pointing to a stronger outlook for the firm's bitcoin accumulation strategy. In a Monday research note, senior equity analyst Mark Palmer kept a Buy rating. Strive shares fell 9.15% on Monday to close at $26.32, leaving the new target 63% above the current price.

Strive said on Oct. 20 that it raised $630 million in gross proceeds from an upsized IPO of 7 million shares of its 15% SATS preferred stock. Palmer said the offering and the expiry of the company's traditional warrants amounted to a clean reset of its capital structure, which relies entirely on perpetual preferred equity. He noted that SATS ranks below SATA in priority, so each new dollar adds assets without adding claims ahead of senior holders.

Separately, Strive reported that it bought 6,182 BTC between Oct. 17 and Oct. 23, bringing total holdings to 43,000 BTC. According to Bitcointreasuries data, that ranks it fourth among public corporate bitcoin holders.

why it matters

For the bitcoin market, the deal signals that corporate buyers keep adding reserves, financed through preferred shares rather than common stock. Such companies remain highly sensitive to the BTC price, so a sharp drop could quickly hit the value of their holdings and the appeal of their preferred dividends.

market impact

Strive and bitcoin treasury firms: fresh capital supports BTC demand, but these shares depend on the bitcoin price

tags

instruments