H.C. Wainwright reiterates Strive as top pick after bitcoin holdings surge

 H.C. Wainwright reiterated its Buy rating on Strive Inc. and maintained the company as its top pick for the second half of 2026, citing faster-than-expected bitcoin accumulation, improving financing capacity and strong growth in bitcoin holdings per share. 

The brokerage lowered its price target to $40 from $42, while arguing that Strive's rapid expansion into one of the world's largest publicly traded corporate bitcoin holders strengthens its investment case. The company's holdings reached 43,124 bitcoin as of October 30, approximately 80% above H.C. Wainwright's previous year-end 2026 forecast of 24,029 bitcoin.

Strive acquired 8,136 bitcoin during the third quarter for approximately $641.9 million, at an average cost of $78,885 per bitcoin. It subsequently purchased another 15,124 bitcoin through October 30, bringing its total holdings to 43,124 bitcoin and placing it among the four largest publicly traded corporate bitcoin holders globally.

H.C. Wainwright highlighted the company's ability to raise capital through preferred stock rather than relying on traditional debt financing. Strive generated $271.6 million in gross proceeds from common stock issuance and $511.2 million through its variable-rate perpetual preferred stock during the third quarter. The brokerage also viewed the recent $700 million SATS preferred stock IPO favourably, saying it expands the company's ability to finance further bitcoin acquisitions.

Bitcoin yield, a measure of bitcoin holdings per share growth, reached 18.5% in the third quarter and accelerated to 19.3% quarter-to-date in the fourth quarter. The company generated a bitcoin gain of approximately 3,671 BTC during the third quarter, compared with 3,257 BTC in the previous quarter.

Separately, Strive reported third-quarter revenue of $2.7 million, down approximately 8% sequentially. Operating expenses increased 59% from the previous quarter to $38.7 million, including a $14.7 million impairment charge related to an acquired medical device research and development intangible asset. Excluding the impairment, operating expenses declined 1% to $24 million.

The company reported net operating income of $508 million, largely reflecting a $533.7 million unrealized mark-to-market gain on its bitcoin holdings.

H.C. Wainwright raised its 2026 bitcoin yield forecast to 103% from 100.7% and increased its projected year-end bitcoin holdings to 45,199 BTC from 44,693 BTC. It also expects Strive to raise approximately $2.52 billion in total capital during the second half of 2026.

The brokerage's $40 price target is based on a 1.6-times multiple applied to its estimated year-end 2026 net asset value of $5.20 billion for Strive's bitcoin holdings. It cited bitcoin price volatility, the company's ability to raise sufficient capital and potential shareholder dilution from equity issuance as key risks.