10-Q: Strive, Inc. Reports Strong Digital Asset Gains, Raises Capital

Strive, Inc. filed its Q3 2026 10-Q, showcasing substantial unrealized gains from its digital asset holdings and significant capital infusions through preferred stock offerings, while also detailing operational expenses and strategic shifts.

Summary

• Strive, Inc. reported a net income of $509.0 million for the three months ended September 30, 2026, largely driven by a $533.7 million unrealized gain on digital assets.
• Total revenues for the quarter were $2.7 million, a significant increase from the prior year's comparable period, primarily due to the inclusion of medical device revenues.
• Operating expenses increased to $38.7 million, up from $19.5 million in the comparable prior period, with a notable $14.7 million impairment charge for medical device R&D.
• The company raised substantial capital through its at-the-market programs for Class A common stock ($271.6 million) and SATA Stock ($511.2 million) during the quarter.
• As of September 30, 2026, Strive held approximately 28,000 bitcoin valued at $2.3 billion and had $285.4 million in cash and cash equivalents.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing as moderately positive, driven by significant unrealized gains in digital assets and substantial capital raised through preferred stock offerings, despite ongoing operational losses.

Positives

• Significant unrealized gain of $533.7 million on digital assets for the three months ended September 30, 2026.
• Substantial capital raised through at-the-market offerings: $271.6 million from Class A common stock and $511.2 million from SATA Stock during Q3 2026.
• Total revenues increased by 74.7% to $2.7 million for the three months ended September 30, 2026, compared to the prior year's comparable period.
• The company's total liquidity stood at $2.68 billion as of September 30, 2026, comprising cash, preferred equity investments, and digital assets.
• Successful completion of a registered public offering of 7,000,000 shares of 15.00% Series A Perpetual SATS Preferred Stock on October 20, 2026, raising approximately $609.0 million in net proceeds.

Negatives

• Operating expenses increased by 55.7% to $38.7 million for the three months ended September 30, 2026, compared to the prior year's comparable period.
• A $14.7 million impairment charge was recorded for medical device research and development intangible assets.
• Despite the net income for the quarter, the nine-month period ended September 30, 2026, shows a net loss of $14.5 million.
• Employee compensation and benefits decreased by 28.5% in the three-month period, but increased significantly by 73.5% for the nine-month period, indicating rising personnel costs.
• The company incurred a goodwill and intangible asset impairment charge of $140.8 million in the prior year period (Sept 12-30, 2025).

Risks

• The market price of bitcoin is highly volatile and could significantly impact the company's financial results.
• The company's preferred stock (SATA and SATS) is junior to existing and future indebtedness and structurally junior to subsidiary liabilities.
• The company's right to unilaterally reduce the regular dividend rate on SATA Stock could negatively impact its trading price and investor returns.
• Future sales of equity securities could depress the trading price of existing securities.
• The tax rules applicable to 'fast-pay stock' could result in adverse tax consequences for holders of SATA and SATS stock.
• The company is not subject to the extensive regulations applicable to investment companies, which could lead to less investor protection.
• The company's decision to terminate R&D on an acquired medical device product resulted in a $14.7 million impairment charge.

Future Outlook

The company anticipates using proceeds from capital markets activity to meet short and long-term liquidity needs. As of September 30, 2026, Strive had the availability to raise $3.6 billion through equity issuances. Management believes its liquidity position is sufficient for at least the next twelve months and is evaluating various balance sheet leverage opportunities.

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 compound purchasing power over time.
• Our SATA Stock and SATS Stock exemplify this approach, as these publicly traded securities aim to provide investors with consistent cash flows and varying levels of volatility, while enabling Strive to capture the spread between the financing cost and the potential long term return of bitcoin.
• Through Strive's continued innovation, we seek to combine legacy market frameworks with modern assets, positioning the Company at the intersection of institutional finance and a bitcoinbased reserve strategy.

Industry Context

StockSavvy.ai notes that Strive's strategy of integrating a Bitcoin treasury with traditional financial instruments like preferred equity and at-the-market offerings is a novel approach in the current market. The company's focus on Bitcoin as a 'hurdle rate' for capital deployment reflects a growing trend among some corporations to adopt digital assets for treasury management, aiming for long-term value appreciation and inflation hedging.

Comparison to Industry Standards

• Strive's SATA Stock is noted as the first listed security in US capital markets history to pay dividends daily.
• The company's approach to capital formation through perpetual preferred equity instruments with at-the-market programs is an innovative adaptation of traditional financing structures.
• While many financial institutions are exploring digital assets, Strive's direct treasury strategy with a significant Bitcoin allocation is less common among publicly traded companies, setting it apart from traditional asset managers.
• The company's reported unrealized gains on digital assets are substantial, but the volatility of Bitcoin means this metric can fluctuate significantly, unlike more stable assets typically held by traditional financial firms.

Legal Proceedings

• A purported stockholder lawsuit against Semler Scientific and its officers alleges violations of Sections 10(b) and 20(a) of the Exchange Act, challenging disclosures related to a DOJ claim and insurance coverage. A motion to dismiss is pending, with a hearing scheduled for December 10, 2026.

Stakeholder Impact

• Shareholders may benefit from the significant unrealized gains in digital assets and capital raised, but also face risks associated with Bitcoin volatility and potential dilution from equity issuances.
• Holders of SATA and SATS preferred stock face risks related to dividend rate adjustments, potential tax implications, and the company's right to redeem shares.
• Creditors are senior to preferred stockholders, meaning their claims would be satisfied first in the event of liquidation.

Next Steps

• Continue to manage operations through three reportable segments: Asset Management, Medical Device, and Bitcoin Operations.
• Evaluate opportunities to leverage the balance sheet in areas such as banking, brokerage, decentralized finance, reinsurance, structured ABS, and tokenization.
• Utilize proceeds from capital markets activity to meet short and long-term liquidity needs.
• The company has a share repurchase program authorized for up to $500.0 million of its Class A common stock and SATA Stock.

Key Dates

Recommendation

The company demonstrates strong capital raising capabilities and significant unrealized gains from its Bitcoin holdings, which is positive. However, the substantial operating expenses, a recent impairment charge in the medical device segment, and the inherent volatility of Bitcoin present considerable risks. The complex preferred stock structures and potential tax implications also warrant caution. Therefore, a 'hold' recommendation is appropriate, pending further clarity on operational profitability and sustained performance of digital assets.

Keywords

Bitcoin, Digital Assets, Preferred Stock, At-the-Market Offering, Asset Management, Medical Device, Capital Raise, SATA Stock