Key insights
- ASST stock price fell 4.09% to $22.25, despite gaining 51% year-to-date.
- Strive CEO Matt Cole remains bullish as the Bitcoin price approaches $68,000.
- BNY increased its Strive stock holdings by 28% to 237,100 shares.
ASST stock price fell 4.09% to $22.25 on November 12, but Strive CEO Matt Cole remains positive about the company. He said Strive stock has gained 51% this year, despite Bitcoin losing 19%. Cole says its cash reserves and preferred shares allow it to buy Bitcoin during upcoming market declines.
ASST Stock Price Falls Despite Strong Yearly Gain
Strive shares lost $0.95 during Thursday’s session, closing at $22.25. The stock later traded at $21.40 in premarket dealings, down another 3.82%.
The latest drop came as the Bitcoin price moved close to its 200-week moving average of $68,000. Matt Cole said this level has historically offered investors a chance to increase their Bitcoin exposure. In a post on X, he explained why Strive is prepared for such periods. Unlike companies that borrow against their Bitcoin, Strive has no debt and does not pledge its holdings as collateral.
That means a sharp fall in Bitcoin does not expose the company to margin calls or forced sales. Strive also keeps cash available to cover its commitments. Cole said these safeguards give management time to make decisions without pressure from lenders.
Cole said the company can raise money through preferred shares while Bitcoin is cheaper. It can then use that money to increase its holdings without selling existing Bitcoin.
He pointed to Strive’s amplification ratio, which measures its exposure to Bitcoin relative to common equity. The ratio stood at 30% at the end of December, when Bitcoin traded around $87,500.
By September 30, Bitcoin was near $83,600, but the ratio had climbed to 55%. Cole said the difference showed how Strive had used market declines to improve its position.
Even after Bitcoin gained 43% from its June low, the ratio remained at 55%. Cole said it would otherwise have fallen to around 47%. Following the launch of SATS and the latest Bitcoin decline, he said Strive’s ratio had risen above 70%.
ASST Stock Valuation Raises Questions
Matt Cole also argued that investors may be undervaluing ASST stock. He said the usual market capitalization to net asset value measure, known as mNAV, does not tell the whole story.
The measure compares a company’s market value with the value of its Bitcoin holdings. However, Cole believes it leaves out the company’s ability to raise funds and buy more Bitcoin. Strive recently removed mNAV figures from its dashboard. Cole said the company should not be valued simply as a fund holding Bitcoin.
He also explained why Strive had stopped issuing common shares over the previous two weeks. Although it held cash above its 18-month dividend reserve, management considered new shares too costly for existing investors.
Cole said common share issuance could still be considered if needed for the company’s Digital Credit business. For now, he prefers to avoid it whenever possible for shareholders.
Bitcoin Price Weakness Comes Amid Institutional Buying
Meanwhile, Bank of New York Mellon increased its Strive holdings during the third quarter. A November 5 filing showed 237,100 shares worth $6.97 million at September 30 prices.
That represented a 28% increase from the 185,556 shares reported at the end of June. However, the filing includes managed holdings and does not prove the bank invested its own money.
Strive also continued buying Bitcoin despite the recent market weakness. A recent filing showed it held 43,153 coins after adding 29 during the week ending November 6. Despite the weaker Bitcoin price, Cole remains positive about 2027. He believes future declines could allow Strive to buy more Bitcoin and improve returns for shareholders.
This article provides cryptocurrency and equity market information, not investment advice. Bitcoin prices and corporate treasury strategies carry substantial financial risks. Management projections and historical market patterns do not guarantee future returns.
