Strive Q3 net income rises on bitcoin gains

Overview

• US structured finance firm's Q3 net income reached $509 mln

• Q3 non-GAAP adjusted net income attributable to common stockholders was $495 mln, with $5.46 EPS

• Company completed $609 mln public offering of SATS preferred stock in October

Outlook

• Company is evaluating opportunities to leverage its balance sheet, including decentralized finance and tokenization

• Company says recent capital raise positions it to pursue long-term returns above bitcoin

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• TREASURY MANAGEMENT - Co said strong bitcoin yield from treasury management strategy was primary driver of Q3 results, per CEO Matthew Cole

• BITCOIN ACQUISITIONS - Co acquired 8,136 bitcoin in Q3, contributing to performance

• CAPITAL RAISING - Co raised $609 mln from SATS preferred stock offering in October, strengthening balance sheet

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for Strive Inc is $37.00, about 79.7% above its November 5 closing price of $20.59

Reuters Recommended Reads

• Nov 4 - Riot Platforms Q3 revenue beats estimates as data center unit growth offsets weak bitcoin prices

• Nov 5 - Core Scientific Q3 revenue nearly triples on colocation growth

• Nov 4 - American Bitcoin Corp Q3 revenue falls sequentially

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)