TD Cowen analyst Lance Vitanza has reaffirmed his Buy rating on Strive, Inc., now trading as ASST on NASDAQ. Despite lowering the price target from $32 to $28, this still presents a significant upside potential of approximately 85% to 130%, given that the shares are currently trading in the $12 to $15 range.
#What is the significance of Strive’s preferred stock?
Strive has also started coverage on its preferred equity, known as the Variable Rate Series A Perpetual Preferred Stock, identified by the ticker SATA. This instrument offers a noteworthy annualized dividend of 13%, resulting in daily payments. This structure is touted as a pioneering development in the U.S. preferred securities market.
#How does Strive fund its Bitcoin initiatives?
Strive's strategy involves an aggressive expansion of its at-the-market equity program, which is designed to finance ongoing Bitcoin acquisitions. The company raises capital through share sales specifically aimed at acquiring more cryptocurrencies.
The SATA preferred stock yields an annualized return of 13% that has been paid daily since June 16, 2026. The shares are typically traded around their $100 par value, remaining within a narrow band of between $99 and $101.
#What do Strive’s financials reveal?
Strive reported a net loss of $265.9 million under generally accepted accounting principles (GAAP) for the first quarter of 2026. Importantly, the company operates without any debt, preferring to support its Bitcoin investments through equity raises instead of taking on loans. Vitanza continues to maintain the price target of $28 for ASST.
#Why does this matter for crypto investors?
The unique daily dividend model of the SATA preferred stock distinguishes it from traditional preferred shares, which typically offer quarterly payouts. Monthly dividends are seen as aggressive, making Strive’s offering of daily payouts particularly appealing. Since these dividends are classified as a return of capital up to the holder's tax basis, this is particularly relevant for tax-savvy investors.
The adjustment of the price target from $32 to $28 serves to recalibrate market expectations. Investors should closely observe how SATA performs within its target price range amid Bitcoin price fluctuations. Any consistent trading below par could indicate a market reassessment of the credit risks associated with the preferred stock, potentially influencing perceptions around ASST's common stock.