TD Cowen raises Strive's price target by 27% following the company's $630M preferred share offering to fund additional bitcoin purchases.
Macro & Markets ·
Strive announced a $630 million preferred share offering, with TD Cowen responding by raising its price target on the company by 27 percent. The offering structure allows Strive to fund additional bitcoin purchases without diluting common shareholders, a mechanism that appears to have prompted the analyst upgrade.
The preferred share format sidesteps traditional equity issuance constraints, enabling the company to deploy fresh capital toward bitcoin accumulation while maintaining the ownership structure of existing common stockholders. This approach appeals to investors focused on bitcoin exposure without share dilution concerns.
What remains unclear is the specific details of the preferred shares themselves—their terms, dividend rate, or conversion provisions—as well as TD Cowen's stated reasoning beyond the funding mechanism and whether other analysts have weighed in on the move.