Strive CIO: Bitcoin treasury companies need to balance financing and buybacks

Strive Chief Investment Officer Ben Werkman said Bitcoin treasury companies must balance common equity issuance, credit financing, and share buybacks while weighing the interests of both common and preferred shareholders. He noted that when a company's common equity market value exceeds the fair value of its Bitcoin holdings, issuing stock and using all proceeds to buy BTC can raise Bitcoin per share, while buybacks with surplus cash also lift that metric but drain reserves. Credit products can boost Bitcoin per share without diluting common stock, though they carry dividend obligations and capital costs, and persistently funding buybacks with preferred equity may weaken dividend asset coverage and credit quality. The comments matter as listed Bitcoin treasury firms weigh dilution against leverage to grow per-share BTC exposure.