Strive has successfully eliminated 92% of the debt it acquired from Semler Scientific, amounting to approximately $110 million. This milestone was reached following the completion of its acquisition on January 13. In a recent announcement, Strive indicated that it utilized the proceeds from a preferred stock sale to retire most of Semler”s liabilities and to purchase an additional 334 BTC.
The company reported a significant demand for its SATA offering, attracting $600 million from investors, which led to an increase in its target fundraising goal from $150 million to $225 million. This fundraising effort is part of Strive”s strategic shift towards a “perpetual-preferred only amplification model” aimed at bolstering its Bitcoin treasury.
Currently, Strive”s total Bitcoin treasury stands at approximately 13,132 BTC, valued at over $1.1 billion at prevailing market prices. This positions Strive among the top 10 largest corporate Bitcoin holders, surpassing CleanSpark in the rankings. The firm confirmed earlier this month its intention to combine funds from its stock offering, existing cash reserves, and potential hedge proceeds to pay off all remaining liabilities, with a commitment to fully clear the debt by April.
Matt Cole, chairman and CEO of the Dallas-based company, stated that they have successfully wiped out $110 million of debt, converting $90 million in convertible notes into SATA stock and fully repaying a $20 million loan from Coinbase. The latest acquisition has further increased Strive”s Bitcoin holdings, solidifying its position in the corporate Bitcoin treasury landscape.
In addition to its impressive Bitcoin accumulation, Strive is experiencing a yield of 21.39% on its BTC, particularly benefiting from the elevated amplification stemming from its SATA offering. The company”s achievements have been met with enthusiasm on social media, where many users have extended their congratulations while others have posed questions about Strive”s offering and ASST asset.
Despite these successes, the ASST stock has seen a decline of 2.23%, trading at $0.80 as of Wednesday, reflecting a more than 92% drop from its peak following the initial Bitcoin strategy announcement. This decline underscores the potential execution risks associated with corporate crypto strategies.
Currently, nearly 200 publicly traded companies collectively hold approximately 1.134 million Bitcoin, representing about 5.4% of the cryptocurrency”s total circulation. Notably, around 63% of the Bitcoin held by corporations is owned by Michael Saylor”s company, which continues to acquire Bitcoin despite facing funding challenges and market downturns.
Analysis from CryptoQuant indicates that since January, Bitcoin whales have been consistently purchasing amid market volatility, while retail investors have been retreating. The report highlights a trend of structural accumulation among larger holders rather than a mass sell-off. For instance, Strategy acquired 22,305 BTC for $2.13 billion between January 12 and 19, with an average purchase price of $95,284 per coin.
As the market navigates through mixed conditions, Bitcoin”s estimated leverage ratio reached 0.184 on Binance, close to the $90K mark, marking the highest level since November. This resurgence indicates a renewed interest in leveraged trading, although increased borrowing by futures traders could heighten the risk of sudden liquidations during rapid price fluctuations.
In the broader market context, Asian equities have shown upward movement, while Bitcoin remains stable near $90,000, partly influenced by geopolitical developments. Analysts at Bitfinex are closely monitoring for signs of market stability, including consistent ETF flows, strong spot buying activity, and sustained trading above the critical $90,000 threshold with reduced volatility.
