Strive's CEO Matt Cole Says Strive’s 13% Bitcoin-Backed Yield Product Can Survive A Bear Market

Strategy's recent 32-Bitcoin sale disciplined capital allocation, while adoption of Bitcoin ETFs and digital-credit products remains in its early stages, according to Matt Cole.

• Strive CEO Matt Cole said on Thursday that Bitcoin-backed "digital credit" could help bridge the transition from fiat currencies to a Bitcoin-based economy.
• Cole said Strive's SATA product pays a 13% variable dividend and is designed to provide Bitcoin exposure with lower volatility.
• He argued Strive's debt-free balance sheet and 18-month dividend reserve could support payouts through a 2022-23-style Bitcoin bear market without selling BTC.

Strive, Inc (ASST) CEO Matt Cole is pitching a new way to earn yield from Bitcoin (BTC). The executive said the firm’s Variable Rate Series A Perpetual Preferred Stock (SATA), which currently pays a 13% variable dividend, could help investors generate income from Bitcoin exposure while weathering even severe crypto bear markets.

Speaking on the Pomp Podcast with Anthony Pompliano, the Professional Capital Management founder, Cole described digital credit as a perpetual preferred-equity security backed by Bitcoin exposure designed to offer investors income and lower volatility without requiring them to hold Bitcoin directly. He argued the product could play an important role during what he sees as a multi-decade transition away from fiat currencies. 

Cole compared Strive's SATA product with roughly 11.5% for Strategy's (MSTR) comparable preferred-security offering STRC. He described the structure as a financing trade that depends on Bitcoin's long-term appreciation outpacing the cost of capital.

According to Cole, Strive's long-term model assumes Bitcoin can compound at roughly 30% annually over the coming decades. Under those assumptions, preferred holders would need only about a 6.5% effective return threshold for the instrument to sustain dividend payments indefinitely. 

Strive’s price closed down more than 7% on Friday. On Stocktwits, the retail sentiment around ASST remained in the ‘bearish’ zone, while chatter around it stayed in the ‘low’ levels over the past day. 

Digital Credit Can Withstand A Bitcoin Bear Market

Addressing concerns about bear markets, Cole said Strive maintains no corporate debt and has built an 18-month dividend reserve, which it voluntarily increased from 12 months. 

He argued that even if Bitcoin experienced a downturn similar to the 2022-23 bear market, the company could continue making payments from reserves without liquidating any Bitcoin holdings. Currently, Strive holds around 19,000 BTC, valued at $1.2 billion, according to data from Bitcoin Treasures.net. 

Bitcoin’s price was trading at $60,883, down by 2% over the past 24 hours. Bitcoin has been declining over the last week, falling by over 17%. On Stocktwits, the retail sentiment around BTC remained in the ‘extremely bearish’ zone, while the chatter around it remained in the ‘high’ levels over the past day. 

Institutional Adoption Has Time To Run

Cole also weighed in on Strategy's sale of 32 Bitcoin, arguing that the move should be seen as disciplined capital allocation rather than weakening trust in Bitcoin.

He said investors were overreacting to the transaction and suggested that Strategy is likely to remain a net buyer of Bitcoin over time. Cole further argued that institutional adoption of both Bitcoin exchange-traded funds (ETFs) and digital credit products remains in its early stages, noting that ETFs typically require several years to reach broad adoption across wealth-management platforms.

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