Strive CEO: Even if Bitcoin "drops to one cent," the company can still survive

Strive Inc. (ASST) CEO Matt Cole stated on Thursday's Pomp Podcast that the company can survive even if the price of Bitcoin "drops to one cent," as the company has no debt that could force it to sell Bitcoin. Cole explained that Strive is financed solely through preferred stock, so there is no price at which Bitcoin would be forcibly liquidated, while borrowing to trade cryptocurrencies could be liquidated due to a price crash.

Strive issues two types of preferred stock: SATA pays a floating dividend of about 13% (increasing to 13.25% in December), and SATS pays a fixed dividend of 15%. Cole mentioned that the company is prepared for an 80% drop in Bitcoin, with approximately 85% to 90% of its balance sheet in Bitcoin and 10% to 15% in cash, sufficient to cover obligations during a downturn, "without needing to sell a single Bitcoin to survive any historical bear market." However, currently, Strive holds 43,153 BTC with an average purchase cost of $87,821, while the current price of Bitcoin is about $67,018, which is approximately 24% lower than its cost price.