Strive's Bitcoin Strategy That 'Could Even Survive an 80% Crash'

Bitcoin (CRYPTO: BTC) could fall 80% and Strive (NASDAQ:ASST) still wouldn’t need to sell a single coin, CEO Matt Cole says, pointing to the company’s cash reserves as proof its preferred equity structure can survive any historical bear market.

Strive Holds 85% to 90% Bitcoin, the Rest in Cash

Cole told Anthony Pompliano that Strive holds roughly 85% to 90% Bitcoin and 10% to 15% cash specifically to ride out downturns without liquidating holdings. 

He explained the company underwrites its business assuming Bitcoin could drop 80%, and even then, Strive could cover its obligations without selling, calling that approach possibly "too conservative" given how early the industry remains.

Unlike leveraged Bitcoin strategies that rely on debt, Cole noted Strive uses preferred equity exclusively, meaning there’s no liquidation point tied to falling prices.

"Bitcoin could literally go to a penny," he said, and Strive would still have 18 months of cash to cover all obligations.

Strive currently offers two perpetual preferred equity products, one paying a 13% yield and another paying 15%, both structured to pay out indefinitely rather than on a fixed timeline.

Cole argued even if Bitcoin only appreciated at the rate of currency debasement, roughly 7% to 8% annually, Strive could still meet those dividend obligations, though in that scenario all of Bitcoin’s returns would flow to preferred shareholders rather than common equity holders.

Moreover, he added, Strive launched its second preferred product after investors pushed back on a variable-rate structure, worried success would eventually compress yields toward 7% or 8%.

That fixed-rate demand, he argued, suggests digital credit products like this could ultimately outgrow Strategy’s STRC and STRK offerings, since most investors want predictable income over a rate that shrinks as the asset class matures.

Bitcoin as a Hurdle Rate Beats the S&P 500, Cole Argues

Cole framed Bitcoin as a tougher hurdle rate than traditional benchmarks like the S&P 500, since treasuries don’t offer a truly risk-free return once accounting for currency debasement.

He called holding US treasuries "the risk guaranteed rate" of losing purchasing power, naming Bitcoin, AI, and energy as the only sectors he finds worth focusing on right now.

Issuer Caps Leave Room for More Digital Credit Players

Cole pointed out institutional investors often run into issuer concentration limits, capping exposure to any single company’s preferred stock at low single-digit percentages, which leaves room for competitors to enter the space.

He estimated roughly 70% of Strive’s current preferred equity buyers are high-net-worth retail investors, though early institutional demand has also materialized, suggesting the category could expand well beyond today’s small handful of issuers.

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