- TD Cowen raised its target from $44 to $56 after Bitcoin purchases exceeded expectations.
- Warrant exercises expanded the share count, pressuring Bitcoin growth per diluted share.
- The $630 million SATS offering is expected to close October 20, subject to customary conditions.
TD Cowen raised its Strive stock price target to $56 from $44 on October 16, citing faster-than-expected Bitcoin accumulation. The company’s treasury reached 35,595 BTC, surpassing the analysts’ fourth-quarter purchase expectations within two weeks.
Despite the upgrade, shares traded near $23.96, down approximately 6.6% during Friday’s session, as dilution concerns weighed on sentiment.
Strive stock target rises as Bitcoin purchases accelerate
Analysts Lance Vitanza and Jonnathan Navarrete lifted their target by approximately 27%. Holdings increased from roughly 28,000 BTC at September’s end, adding almost 7,600 coins.
That increase exceeded their previous forecast of 4,750 BTC in purchases for the entire quarter. Recent additions included 3,311 BTC announced Tuesday and another 2,822 BTC disclosed Wednesday.
However, the growing treasury did not translate directly into equivalent gains per share. Warrant exercises increased the diluted share count, pressuring the company’s BTC Yield metric.
The analysts suggested some warrant holders may have sold newly received shares, adding pressure to Strive stock. They expect that selling to ease following the exhaustion of the $27 warrants.
The higher target remains an analyst forecast, rather than an assured future trading price. Total holdings and Bitcoin exposure per diluted share also measure different aspects of treasury growth.
Strive stock outlook includes a $630 million funding plan
The company has priced seven million SATS preferred shares at $90 each, targeting approximately $630 million in gross proceeds. Its SEC filing confirms that total precedes underwriting discounts, commissions and offering expenses.
Net proceeds may support Bitcoin purchases, working capital and other corporate purposes. The offering remains subject to closing conditions, with settlement expected October 20.
For Strive stock investors, preferred financing offers funding without immediately issuing additional common shares. However, it adds dividend commitments that affect the company’s financial flexibility.
SATS carries a 15% cumulative annual dividend on its $100 stated amount. At the $90 offering price, that implies an approximately 16.7% annual cash yield if dividends are paid.
The company plans to reserve cash covering 18 months of dividends. Payments are scheduled to begin November 9, when declared and legally available.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
