Strive Digital Assets announced Monday a comprehensive strategy to bolster its financial foundation and accelerate its treasury holdings, initiating plans to raise $150 million in capital. The cryptocurrency investment firm stated the funds will be strategically divided between extinguishing outstanding corporate debt and executing a significant purchase of Bitcoin (BTC).
According to the proposal filed with the SEC, Strive intends to secure the funding through a private offering, primarily consisting of the issuance of senior convertible notes and new common stock. The company aims to allocate roughly $100 million, or two-thirds of the proceeds, toward paying down high-interest long-term debt acquired during its expansion phase in 2022.
CEO Alex Chen stated, “This capital raise is paramount to de-risking our balance sheet. Reducing our leverage and minimizing interest expenditures is essential for achieving sustainable profitability and maximizing shareholder value.”
The remaining $50 million will be immediately deployed for the strategic acquisition of Bitcoin to be held in Strive’s corporate treasury reserve. This decision aligns with the firm’s long-term conviction in the digital asset’s value proposition and its role as a hedge against inflation.
“While fiscal responsibility guides our debt reduction efforts, our core mission remains centered on digital asset exposure,” Chen added. “We view the current market cycle as an opportune moment to increase our Bitcoin position substantially, solidifying Strive’s standing as a leading institutional holder of BTC.”
The capital raise is expected to close within the next 45 days, pending regulatory approval and favorable market conditions.
Source: Strive plans to raise $150M to pay down debt and buy more Bitcoin
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