Strive CIO advises BTC treasury firms on funding strategies

Ben Werkman, chief investment officer at Strive, stated that Bitcoin treasury companies, or DATs, utilize three primary funding tools: equity offerings, credit instruments such as preferred stock and bonds, and share buybacks. Werkman noted that these companies generally raise funds through common stock issuance and purchase BTC when their shares trade above the value of the Bitcoin they hold. To prevent dilution of existing shareholders, they can issue credit products in the form of preferred stock or bonds for BTC purchases. Additionally, when shares are undervalued or excess cash is available, companies can enhance per-share value through buybacks. Werkman emphasized that long-term shareholder value can increase when companies adopt a balanced approach across these three methods: equity issuance leveraging share-price premiums, increased leverage through bonds and preferred stock, and share repurchases.

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