Strive CEO Cole Discusses Bitcoin Amplification Framework and Increases Holdings by 2,822 BTC
Strive CEO Matt Cole published a statement outlining the investment framework, noting that long-term monetary supply trends are an important reference for assessing capital costs, and that scarce assets have consistently outperformed currency depreciation over the past 55 years.
Since 1970, the compound growth rate of gold has been 9.0%, while M2 has been 6.7%; since the global financial crisis, these figures are 9.5% and 6.3%, respectively; since the COVID-19 pandemic, they have reached 18.3% compared to 6.5%.
Cole believes that Bitcoin, as digital gold, is a superior store of value and is still in the early stages. As its maturity increases, its performance should surpass that of gold, as long as long-term currency depreciation and debt crises persist, accelerating the excess returns of scarce assets relative to the dollar.
He emphasized that the amplification ratio is the decisive factor for Strive to outperform Bitcoin, rather than capital costs. Establishing and maintaining a high amplification ratio without liquidation is extremely difficult, and most investors have not fully priced in the moat built around high amplification and high liquidity.
The company increased its holdings by 2,822 BTC at an average price of approximately $83,266 from October 12 to 13, paying about $235 million, raising its total holdings to 35,595 BTC, with an amplification ratio of about 47%.
On the market side, this strategy amplifies Bitcoin exposure through preferred stock financing, with funds flowing from fiat debt and cash into Bitcoin reserves. High-leverage companies benefit in bull markets, while investors relying on low leverage and fiat cash flow face pressure.
Additional information shows that Cole criticized consensus investors for overly focusing on capital costs and fiat cash flow, arguing that those who truly understand Bitcoin should maximize and permanently short the dollar while going long on Bitcoin.
Source: Public Information
ABAB AI Insight
Matt Cole leads Strive in transforming from an asset manager to a Bitcoin treasury company by financing Bitcoin purchases through issuing preferred shares (such as SATA). The historical path emphasizes building liquidity and investor trust during bear markets to support a high amplification ratio.
Its capital path reflects amplifying Bitcoin holdings through preferred shares rather than traditional debt, maintaining a high amplification ratio (recently around 47-55%), with goals for further enhancement, directing resources from fiat financing tools to Bitcoin reserves, creating a differentiated exposure compared to peers like Strategy.
Similar cases include MicroStrategy's model of amplifying Bitcoin holdings through convertible bonds and preferred shares, as well as the relative performance of early gold ETFs during periods of monetary expansion. The current Bitcoin treasury industry is transitioning from simple holding to structured amplification financing.
Essentially, it involves capital concentration: financing through preferred shares to concentrate funds in Bitcoin, leveraging the amplification ratio to enhance common stock returns during price increases, while using liquidity and structural design to reduce liquidation risk, allowing scarce asset exposure to gain leverage against fiat depreciation.
ABAB News · Law of Cognition
- The amplification ratio drives excess returns, with capital costs having far less impact than expected.
- Scarce assets outperform monetary supply in the long term, with trends accelerating rather than slowing.
- Maintaining high amplification without liquidation is the core moat of Bitcoin treasuries.