10-Q: Strive, Inc. Q1 2026: Digital Assets Surge, Medical Device Revenue Grows

Strive, Inc. reported a significant increase in digital assets and medical device revenues for the first quarter of 2026, alongside substantial operating expenses and a net loss.

Summary

• Strive, Inc. (ASST) filed its Form 10-Q for the quarter ended March 31, 2026, reporting total revenues of $2.76 million, a 94% increase from the prior year's $1.42 million.
• The company's digital assets, primarily Bitcoin, saw a substantial increase in value, reaching $929.4 million by the end of the quarter, up from $668.5 million at the end of 2025.
• Medical device revenues contributed $1.37 million, a significant increase attributed to the Semler Scientific merger.
• Operating expenses rose sharply by 275% to $20.6 million, driven by a $11.0 million increase in employee compensation and benefits, including stock compensation, and a $4.0 million increase in general and administrative expenses.
• The company reported a net loss of $265.9 million for the quarter, compared to a net loss of $3.7 million in the prior year, largely due to a $295.8 million net unrealized loss on digital assets.
• Strive completed a 1-for-20 reverse stock split on February 6, 2026.
• As of March 31, 2026, the company had $95.1 million in cash and cash equivalents and $50.5 million in investments in preferred equity, with total liquidity of $1.07 billion.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the significant net loss and increased operating expenses, despite revenue growth and a substantial increase in digital asset holdings.

Positives

• Total revenues increased by 94.0% to $2.76 million for the three months ended March 31, 2026, compared to $1.42 million for the same period in 2025.
• Medical device revenues increased by $1.4 million, or 100.0%, to $1.4 million for the three months ended March 31, 2026, due to the Semler Scientific Merger.
• Digital assets (Bitcoin) increased in value to $929.4 million as of March 31, 2026, from $668.5 million as of December 31, 2025.
• The company has significant liquidity, with $95.1 million in cash and cash equivalents and $50.5 million in investments in preferred equity, totaling $1.07 billion.
• Strive has the availability to raise approximately $276.3 million through its Class A common stock ATM program and $487.8 million through its SATA Stock ATM program as of March 31, 2026.
• The company has no short or long-term debt outstanding as of May 12, 2026, after repurchasing the remaining balance of long-term notes payable.

Negatives

• The company reported a net loss of $265.9 million for the three months ended March 31, 2026, a significant increase from the $3.7 million net loss in the prior year.
• Operating expenses increased by 275.2% to $20.6 million for the three months ended March 31, 2026, from $5.5 million in the prior year.
• Employee compensation and benefits increased by 531.8% to $13.1 million, largely due to stock compensation expense and increased headcount from the Semler Scientific Merger.
• General and administrative expenses increased by 211.5% to $5.9 million, attributed to increased professional services and merger-related costs.
• A substantial net unrealized loss of $295.8 million on digital assets was recorded for the three months ended March 31, 2026.
• Dividends on preferred stock increased by $13.5 million to $13.5 million for the three months ended March 31, 2026, due to the issuance of SATA Stock.

Risks

• The market price of bitcoin may fluctuate significantly, and declines in its market price could materially and adversely affect financial results.
• The company is exposed to interest rate risk via its SATA Stock, which accumulates dividends at a variable rate.
• The outcomes of legal proceedings are subject to significant uncertainty and could adversely affect results of operations and financial condition.
• The company's tax attributes, including net operating losses, may be subject to limitations under IRC Section 382 due to the Asset Entities Merger and Semler Scientific Merger.

Future Outlook

The company's strategy involves disciplined capital allocation, using Bitcoin as a hurdle rate for investments, and growing its Bitcoin holdings. Strive aims to innovate in capital markets with its SATA Stock and ATM program. Management believes its current liquidity position is sufficient to meet working capital needs for at least the next twelve months and anticipates using proceeds from capital markets activity to fund its needs.

Management Comments

• Strive is a structured finance company and institutional asset manager focused on disciplined capital allocation and long term value creation.
• We have strategically adopted bitcoin as our hurdle rate for capital deployment because of our fiduciary duty to maximize long-term value for stockholders, and compounding purchasing power over time.
• Our SATA Stock exemplifies this approach, a publicly traded security that aims to provide investors with consistent cash flows and minimal volatility, while enabling Strive to capture the spread between SATA Stocks financing cost and the potential long term return of bitcoin.
• Through these innovations, Strive seeks to combine legacy market frameworks with modern assets, positioning the Company at the intersection of institutional finance and a bitcoin-based reserve strategy.

Industry Context

StockSavvy.ai notes that Strive's strategy of holding Bitcoin as a treasury asset and using it as a hurdle rate for capital deployment is a distinctive approach within the asset management and structured finance sectors. The company's focus on modernizing financing structures with instruments like the SATA Stock and ATM programs reflects broader industry trends towards innovative capital formation and the integration of digital assets into traditional financial frameworks.

Comparison to Industry Standards

• Strive's reported total revenues of $2.76 million for Q1 2026 represent a significant increase from the prior year, but the company's substantial net loss of $265.9 million highlights the high-risk, high-reward nature of its digital asset strategy.
• The company's operating expenses of $20.6 million are considerably higher than its revenues, a common characteristic of companies in early growth or investment phases, particularly those with significant R&D or asset acquisition costs.
• The substantial unrealized loss on digital assets ($295.8 million) underscores the volatility inherent in Bitcoin investments, a key differentiator from traditional asset managers who typically do not hold such volatile assets directly on their balance sheets.
• Strive's reported cash and cash equivalents of $95.1 million and total liquidity of $1.07 billion provide a strong buffer, which is crucial given the operational losses and the volatile nature of its primary investment asset.

Corporate Governance

Legal Proceedings

• A purported stockholder of Semler Scientific filed a lawsuit alleging violations of Sections 10(b) and 20(a) of the Exchange Act, challenging disclosures related to a DOJ claim and settlement negotiations.
• The company is subject to various legal proceedings arising in the ordinary course of business, but does not expect their resolution to have a material adverse effect on its financial position, results of operations, or cash flows.

Stakeholder Impact

• Shareholders: The significant net loss and increased operating expenses may negatively impact shareholder value in the short term, while the growth in digital assets and potential for future appreciation could be a long-term positive.
• Creditors: The company has no short or long-term debt outstanding as of May 12, 2026, reducing risk for creditors.
• Employees: Increased employee compensation and benefits reflect growth and integration post-merger, potentially impacting morale and retention.
• Investors: The company's unique strategy involving Bitcoin as a treasury asset and hurdle rate presents both opportunities and significant risks, requiring careful consideration.

Next Steps

• Continue to execute on the Bitcoin strategy, acquiring Bitcoin through open market purchases and alpha strategies.
• Utilize ATM programs for Class A common stock and SATA Stock to raise capital as needed.
• Manage operating expenses and integrate acquired businesses effectively.
• Monitor and manage market price risk associated with Bitcoin holdings.
• The company will begin daily dividend payments on SATA Stock starting June 16, 2026, as per the Amended and Restated Certificate of Designation.

Key Dates

Recommendation

Strive, Inc. presents a complex investment profile. While revenue growth and a significant increase in digital asset holdings are positive, the substantial net loss, soaring operating expenses, and the inherent volatility of Bitcoin create considerable risk. The company's innovative financial instruments and capital raise capabilities offer potential, but the current financial performance warrants a cautious 'hold' stance until a clearer path to profitability emerges and the risks associated with its digital asset strategy are better understood.

Keywords

Strive, Inc., Form 10-Q, Quarterly Report, Digital Assets, Bitcoin, Medical Device, Semler Scientific Merger, Preferred Stock, SATA Stock, Financial Statements, Net Loss, Operating Expenses, Asset Management