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StoneX Raises Strive Price Target to $43, Citing Bitcoin Accumulation Strategy
StoneX raised its price target on Strive to $43 from $32 and kept a buy rating. Strive raised $630 million by issuing 7 million shares of SATS preferred stock, which pays a 15% annual dividend.
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What happened
StoneX raised its price target on Strive to $43 from $32 and kept a buy rating. Strive raised $630 million by issuing 7 million shares of SATS preferred stock, which pays a 15% annual dividend.
Confirmed
Global impact / market context
Preferred stock is a type of share that pays a set dividend before common shareholders are paid. Strive uses this money to buy Bitcoin, so cheaper, steadier funding could let it buy more Bitcoin without selling common shares.
Analyst inference
The buy rating and higher target suggest analysts see Strive's funding plan as workable. Investors comparing Strive with other Bitcoin buyers may focus on the 15% dividend cost and whether Bitcoin gains outpace that annual payout.
Analyst inference
What to watch
- Strive said it already holds the funds to pay SATS dividends for the first 18 months, which limits near-term cash strain from the 15% annual dividend. Confirmed
- Watch whether Strive issues more preferred stock to fund further Bitcoin purchases, and whether the 15% dividend stays affordable if Bitcoin prices fall. Proposed
- SATS ranks below SATA in repayment priority, meaning SATA holders are paid first in a wind-down. That ordering may shape demand for each series. Analyst inference
Affected assets
- BTC — Bitcoin