Strive (ASST) Pops As Bitcoin Surges Near $69,000
Strive Inc (NASDAQ:ASST) shares are trading higher Friday morning as Bitcoin (CRYPTO:BTC) spiked toward the $69,000 level. Here’s what investors need to know.
- Strive shares are powering higher. Why are ASST shares rallying?
Strive Stock Rises In Tandem With Bitcoin
Equity investors increasingly view ASST as a leveraged play on Bitcoin prices, so the stock often reacts more aggressively than the underlying token during big moves.
With Bitcoin up strongly intraday, traders are recalculating the implied value of Strive's digital-asset holdings and bidding up the company's equity as a result.
13,131 Bitcoin Balance And Dividend News Fuel Bullish Sentiment
In a new Form 8-K filing, Strive disclosed that as of Feb. 11 it held approximately 13,131.8 Bitcoin in its treasury, alongside $127.2 million in cash and cash equivalents.
As Bitcoin rallies, the mark-to-market value of that stash rises by hundreds of millions of dollars, effectively boosting Strive's balance sheet without the company having to generate additional operating income.
The filing also noted that Strive's board approved an increase in the regular dividend rate on its Variable Rate Series A Perpetual Preferred Stock (NASDAQ:SATA) from 12.25% to 12.50% and declared a monthly cash dividend of $1.0417 per SATA share.
The richer yield may draw incremental income-focused investors to the Strive capital structure, adding another layer of demand around the name.
Deep Technical Weakness Persists
Strive is currently trading 40.4% below its 20-day simple moving average (SMA) and 64.6% below its 100-day SMA, indicating significant short-term weakness.
Over the past 12 months, shares have decreased by 33.26%, and they are positioned closer to their 52-week lows than highs, reflecting ongoing challenges.
The RSI is at 27.42, suggesting that the stock is oversold, while the MACD is below its signal line, indicating bearish pressure.
The combination of oversold RSI and bearish MACD suggests mixed momentum, indicating that while the stock is oversold, the overall trend remains negative.
- Key Support: $7.50
ASST Shares Climb Friday
ASST Price Action: Strive shares were up 13.12% at $8.72 at the time of publication on Friday. The stock is trading near its 52-week low of $7.57, according to Benzinga Pro data.
Image: Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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