ASST — Q2 2026 Financial Report Analysis

Overview

Strive, Inc. (formerly Asset Entities, now a bitcoin-holding company that also owns the Strive Asset Management fund business and, since January 2026, Semler Scientific's medical-device unit) lost $257.6 million in the second quarter of 2026. Almost all of it came from one line: the bitcoin it owns fell in price. Bitcoin's fair value per coin on Strive's books dropped from $68,198 on March 31 to $58,631 on June 30 (-14.0%), and because accounting rules (ASU 2023-08) require Strive to mark its coins to market every quarter, that drop flowed straight into the income statement as a $228.0 million unrealized loss. Strive kept buying anyway: it added 6,236 bitcoin in the quarter at an average cost of $74,290 each, ending June with 19,864 bitcoin, funded mostly by selling new common shares and a high-dividend preferred stock called SATA.

The actual operating businesses are small next to the bitcoin pile. Total revenue was $2.9 million, while operating expenses were $24.4 million.

At a glance

• 19,864 bitcoin, worth $1.16 billion at June 30 but bought for $1.88 billion. The coins sit about $718 million (38%) below what Strive paid for them; the weighted average cost is $94,793 a coin against a $58,631 quarter-end price.
• $783.0 million of SATA preferred stock now ranks ahead of common shareholders. At the 13.00% annual dividend rate in place on June 30, that is roughly $102 million a year in dividends (our calculation), against about $12 million a year of revenue at the Q2 run rate.
• $145.5 million of cash plus $42.9 million of Strategy Inc. preferred (STRC) and no debt. Strive retired the Coinbase loan ($20.3 million) and the last of Semler's convertible notes ($10.0 million) in the first half, so all its bitcoin is unencumbered.

The numbers

The year-ago column is the "Predecessor" — the private Strive Enterprises asset-management business before it merged into Asset Entities in September 2025. It held no bitcoin and had no medical-device business, so most year-over-year comparisons are not meaningful (n/m).

Six-month figures: revenue $5.7 million, net loss $523.5 million, net loss to common shareholders $563.2 million, or $(8.22) per share. The company says bitcoin per share rose 37.7% in the first half ("Bitcoin Yield").

Takeaway: Strive's results are a bet on the bitcoin price financed by a 13% preferred dividend. The quarter's loss is mostly a paper mark, but the dividend is a real cash cost of roughly $100 million a year that the $3 million-a-quarter operating businesses come nowhere near covering — so Strive depends on continued stock and preferred sales (or eventually its bitcoin) to pay it.

Where the loss came from

• Bitcoin marks: $228.0 million. Strive held 13,628 coins at the start of the quarter and bought 6,236 more at $74,290 on average; every coin was then valued at $58,631 on June 30. Coins bought during the quarter lost money too, since the average purchase price was well above the quarter-end price.
• STRC preferred: $6.0 million unrealized loss, plus a $2.8 million "other investment loss" from the change in fair value of other financial instruments. Strive holds preferred stock issued by Strategy Inc. (formerly MicroStrategy) as a yield-earning cash substitute; its cost basis is $48.8 million against a $42.9 million fair value.
• Operating costs: $24.4 million. Employee pay and benefits rose to $16.3 million from $2.0 million. The filing attributes this mainly to $5.7 million of stock-based compensation (there was none a year ago because performance conditions had not been met, and it now includes Semler employee options Strive took over), plus higher bonus accruals and Semler's staff. General and administrative costs rose to $6.4 million from $1.5 million on public-company costs (professional fees, insurance, listing fees), bitcoin custody fees and the Semler merger.

Revenue nearly doubled, but not because the old business grew: advisory fees were flat at $1.5 million (Strive Asset Management runs over $2.8 billion), and the entire increase is the $1.4 million of medical-device sales that came with Semler.

How Strive is funding the bitcoin

In Q2 Strive raised $211.3 million gross from selling 12.8 million new Class A shares through its at-the-market program (selling shares into the market gradually at prevailing prices) and $345.7 million gross from 3.46 million new SATA preferred shares. That roughly matches the ~$463 million it spent on the quarter's 6,236 coins (6,236 × $74,290, our calculation) plus dividends and running costs.

SATA is the key piece. It is a perpetual preferred stock — no maturity date — with a $100 face value and a variable dividend that Strive resets with the stated aim of keeping the shares trading between $99 and $101. The rate rose from 12.25% at the end of 2025 to 13.00% by June 30, and since June 16 the dividend has been paid every business day. Preferred holders' claims ($783.0 million of liquidation preference) come before common shareholders on both dividends and assets.

What the headline numbers hide

• Cash burn is real even if the bitcoin loss isn't (yet). Operating cash outflow was $39.4 million in the first half, and Strive paid another $33.2 million of preferred dividends in cash. Stripping stock pay and depreciation out of Q2's expenses still leaves about $18.6 million of cash-type costs against $2.9 million of revenue (our calculation).
• Book value per common share fell sharply. Shareholders' equity was $646.2 million on June 30 across 81.9 million Class A and B shares, about $7.89 a share, versus $582.4 million across 44.7 million shares (about $13.03) at December 31 (our calculations). And the balance sheet carries SATA at $702.4 million, below its $783.0 million liquidation preference; using the liquidation preference instead, the common shareholders' share of net assets is about $565 million, or roughly $6.90 a share.
• "Bitcoin Yield" is not income. The company's own filing says the metric ignores that preferred holders rank ahead of common shareholders. Buying bitcoin with preferred-stock money raises bitcoin per common share — which is why the yield looks strong — while also adding a senior claim and a cash dividend obligation that the metric leaves out.
• The non-GAAP figure is not flattering here. Adjusted net loss to common shareholders ($275.0 million, $3.65 a share) excludes stock pay, the STRC-related "other investment loss" and small debt items, but does not exclude the bitcoin mark, so it is close to the GAAP loss. Note the six-month GAAP loss was helped by a one-off $66.7 million "bargain purchase gain" — accounting's term for buying a company (Semler) for less than the fair value of its net assets — which the adjusted figure removes, making the adjusted H1 loss ($594.7 million) larger than the GAAP one.
• Share count distortions. A 1-for-20 reverse stock split in February 2026 and the switch from Predecessor to Successor accounts make the year-ago EPS of $(3.86) a poor comparison; weighted shares went from 2.3 million to 75.3 million.

Outlook

Strive gives no revenue or earnings guidance. What it has said: it intends to keep buying bitcoin with capital raised through its at-the-market programs (it had $4.4 billion of remaining capacity under its common and SATA sales agreements at June 30), it bought another 303 coins between July 1 and August 7 to reach 20,167, and cash was $154.9 million on August 7 with STRC worth $48.0 million.

Our read: Q3 results will again be set almost entirely by where bitcoin closes on September 30 relative to $58,631. The more durable question is the funding loop. Each SATA sale adds 13% annual dividends; with revenue around $12 million a year, those dividends are paid from cash raised by selling more securities. That works while investors keep buying SATA near $100 and common stock trades at a level that makes issuance worthwhile. Watch the SATA dividend rate (a rising rate means Strive is paying more to keep the stock near par), the pace of common share issuance relative to bitcoin bought, and the cash balance against roughly $8–9 million a month of dividends at the current preferred count.

The full Q3 10-Q is likely in mid-November, based on the May 14 and August 10 filing dates for Q1 and Q2.