StoneX Raises Strive Price Target to $43, Citing Bitcoin Accumulation Strategy

StoneX raised its price target on Strive after giving a positive assessment of the company's funding structure and Bitcoin accumulation strategy.

The Block reported on Oct. 27 that Mark Palmer, StoneX's senior equity analyst, lifted his price target on Strive to $43 from $32 and maintained a buy rating. The new target is about 63% above the stock's Oct. 26 close of $26.32.

The increase reflects improvements in Strive's capital structure and its ability to secure funding for Bitcoin purchases. Strive announced on Oct. 20 that it had raised $630 million by issuing 7 million shares of SATS preferred stock, which pays a 15% annual dividend.

Palmer wrote that the new preferred-stock issuance, together with the expiration of existing warrants, reshaped the company's capital structure. He added that the model of funding Bitcoin purchases through perpetual preferred shares has become more sustainable.

Strive added SATS alongside SATA, its existing floating-rate perpetual preferred stock, giving the company a funding framework that can meet different types of investor demand. SATS carries a 15% annual dividend rate, and the company has already secured the funds needed to cover dividend payments for the first 18 months.

Palmer also viewed positively the fact that SATS ranks below SATA in repayment priority. Even as assets increase through the new preferred-stock issuance, no claims senior to the existing top-ranking preferred shares are being added, a structure he said also benefits SATA investors.

Separately, Strive said on Oct. 26 that it bought an additional 6,182 Bitcoin between Oct. 17 and Oct. 23. That brought its total holdings to 43,000 BTC, making it the fourth-largest Bitcoin holder among listed companies, according to Bitcoin Treasuries.