Strive CEO said that the US$700 million warrant operation may make it the second largest public Bitc

Strive CEO says the US$700 million warrant operation may make it the second-largest Bitcoin company in listed companies.

Matt Cole, CEO of Nasdaq-listed Bitcoin custodian Strive Inc (stock code: ASST), said that if certain outstanding warrants are exercised and the company further utilizes its so-called "digital credit line," Strive is expected to become the second-largest publicly held Bitcoin company by the end of 2026. He mentioned on Wednesday's One Share podcast that while he thought it was not impossible for Strive to end the year with second place in Bitcoin holdings, he quickly added that this was not his main expectation and that multiple conditions would need to be met at the same time to achieve this goal.

The comments come as Strive is accelerating its purchase of Bitcoin. In August alone, the company purchased 3,156 BTC units. According to documents submitted on August 31, the purchase volume in the most recent week (August 24 to 28) was 1,800 BTC units, with an average price of US$79,431 per unit (including handling fees), and a total amount of approximately US$143 million. This increased Strive's total holdings to 23,156 BTC, worth approximately US$1.8 billion to US$1.9 billion at recent prices, surpassing Bullish and ranking fifth among publicly listed bitcoin holders tracked by BitcoinTreasures.

How Cole arrived at $1.4 billion in purchasing power

Cole pointed out that Strive has warrants worth more than $700 million, with an exercise price of $27 each, and will expire in mid-October. If Strive's share price trades above $27 and the warrant holder chooses to exercise it by paying cash, the company will receive cash corresponding to the exercise price. Cole said the funds could then be used to purchase more bitcoins.

In addition, Cole mentioned another $700 million in "digital credit" capacity. However, it is not clear from his comments what this "digital credit" specifically refers to. Whether it is based on the company's existing Bitcoin positions, loans it has arranged with a specific lending institution, or some theoretically feasible number described by Cole, the podcast dialogue did not clarify it. In his words, if you plug in the estimated bitcoin price at the time of exercise of the warrant, invest US$700 million in bitcoin, and then add a US$700 million digital credit line, the potential total purchasing power of bitcoin could reach US$1.4 billion.

It is worth noting that Strive's stock recently hit a year-on-year high of $26.80, just below the warrant exercise price of $27. These warrants can only be exercised at the discretion of the holder, and Strive itself has no right to forcibly convert them. If the warrant finally expires and is not used, the cash will not actually arrive. Given that the warrants expire in mid-October and the comment was published in early September, the window of time for the stock price to rise and stay above $27 long enough for holders to act is quite narrow, which is partly overshadowed by the excitement of the larger amount figures in the discussion.

Mathematical calculations behind the rankings

Currently, the list of listed companies that hold the most bitcoins shows a clear head-centered trend. The former MicroStrategy company (now renamed Strategy) holds approximately 845,000 BTC, far ahead of all other companies. Twenty One Capital ranked second with approximately 43,514 BTC. Metaplanet holds approximately 43,000 BTC, ranking third. MARA Holdings holds approximately 35,000 to 36,000 BTC, ranking fourth. Strive currently ranks fifth with 23,156 BTC.

This means a difference of about 20,000 BTC between second place and Strive's current status. Based on a price of approximately US$80,000 per Bitcoin, US$700 million of warrant proceeds could purchase approximately 8,000 to 9,000 BTC, while the full amount of US$1.4 billion could purchase approximately 17,000 BTC. This will largely narrow the gap, but only if multiple factors are in place at the same time: Bitcoin prices need to match the rise, warrants need to be actually exercised, additional credit needs to be actually raised and put into use, and purchases by companies such as Twenty One, Metaplan and MARA need to slow down rather than continue to increase their holdings. Cole also mentioned a possible operating rate of about 1,000 BTC per week, but he quickly added that this may or may not happen.

In addition, there is a basic assumption behind the entire plan that deserves to be clearly stated, which is that it all depends on Bitcoin prices remaining strong or rising further. If prices fall, warrant holders have little reason to pay $27 a share for shares that may be worth less on the open market, and expected gains of $700 million will not be realized.

It's also important to be clear that Strategy's leadership falls into a completely different category. In 2026, there is no realistic scenario to suggest that any of Strive's warrant-related operations pose any close threat to its top position.

How Strive actually financed the bitcoins it purchased

Strive is a Dallas-based asset management company that adopted a bitcoin escrow strategy under Cole's leadership. To fund its Bitcoin purchases, the company has been gradually selling shares on the open market, using its regular Class A common stock ASST and a separate floating rate preferred stock SATA. Purchases from August 24 to 28 were funded in this way, with approximately $80 million coming from sales of SATA and approximately $74 million coming from sales of common stock, with most of the funds directly used to purchase Bitcoin while retaining a cash buffer to pay subsequent dividends on preferred stock. The article did not elaborate on exactly what the dividend yield would be or how much continuing obligations might grow as more preferred shares are issued, which is noteworthy because dividend commitments directly compete with the goal of putting fresh cash into Bitcoin.

This financing structure is very important when thinking about the term "second place". New Bitcoin positions can be made simultaneously with the issuance of new shares, which means that existing shareholders 'ownership shares are diluted with each new purchase funded in this way. If the number of outstanding shares continues to grow accordingly, ranking fifth or even second in total Bitcoin holdings is not of great significance to individual shareholders. Becoming the largest holder in terms of total asset size is a fundamentally different concept from holding the most bitcoin per share, and investors should keep this difference in mind when reading such headlines.

Looking back, there is a broader issue worth exploring here. Strategy essentially created this entire category of public companies treating Bitcoin as a core treasury asset, and several other firms have since followed that same playbook. Whether Strive’s approach reflects a genuinely sound long term financial strategy, or is more about generating headlines and staying relevant in a trend that already has a dominant leader, is something the numbers alone cannot answer. Chasing a ranking, on its own, does not necessarily translate into real value for the people actually holding the stock.