The CEO of Strive is considering another preferred equity raise, contingent on Bitcoin's continued climb, according to a person familiar with the matter. The move would give the digital asset firm additional firepower to expand its operations or make strategic investments as the market heats up.
Why preferred equity
Preferred equity sits between debt and common stock. It typically pays a fixed dividend and gets priority over common shares in a liquidation, but doesn't carry voting rights. For a company like Strive, it's a way to raise capital without diluting existing common shareholders — a key concern for founders and early backers.
The structure also appeals to institutional investors who want a steady income stream and some downside protection. If Bitcoin keeps climbing, the terms of a preferred deal could become more favorable for Strive, giving the CEO more leverage in negotiations.
Bitcoin's rally and Strive's strategy
Bitcoin has been on a sustained upward trend this year, pushing past previous resistance levels. The rally has breathed new life into the crypto ecosystem, with firms like Strive looking to capitalize on the momentum. A preferred equity raise would allow Strive to lock in capital at a time when investor appetite for crypto exposure is strong.
The CEO's consideration of the raise signals confidence that the rally has legs — or at least that the current price environment justifies the cost of the new shares. It's a bet on continued growth, not a hedge against a downturn.
What comes next
The decision hinges on Bitcoin's price trajectory. If the cryptocurrency continues to climb, Strive's CEO is expected to move forward with the raise. If the rally stalls, the plan could be shelved. No timeline has been set, and the firm has not filed any regulatory documents related to the offering.
For now, the market is watching Bitcoin's next move — and Strive's next move after that.
