Daily News 19

Tag: Bitcoin treasury

  • Strategy’s STRC Plan Could Bring 365 Dividend Record Dates

    Strategy’s STRC Plan Could Bring 365 Dividend Record Dates

    Key Highlights

    • Strategy (formerly MicroStrategy) proposes shifting its preferred securities—STRF, STRC, STRK, and STRD—from monthly, semi-monthly, or quarterly dividend schedules to daily calendar-day accruals, including weekends and U.S. market holidays, with payments on the next business day.
    • The move aims to transform the preferreds into liquid cash-like yield instruments, reduce price volatility, improve liquidity, and support STRC’s $100 par value through share sales above $100 and buybacks below $100.
    • Shareholder approval is required; if granted, STRC daily accruals begin November 1, 2026 (first payment November 2), while STRF, STRK, and STRD transition January 1, 2027 after completing Q4 2026 cycles.

    Strategy Proposes Daily Dividend Accrual for Preferred Securities

    Michael Saylor’s Strategy, the corporate treasury pioneer that recently resumed adding Bitcoin to its balance sheet, has unveiled a structural proposal to overhaul how dividends accrue and are paid across its suite of preferred securities. The company—trading under the ticker MSTR—filed a plan to migrate STRF, STRC, STRK, and STRD from their current monthly, semi-monthly, or quarterly record-date schedules to a system where dividends accumulate every calendar day, including Saturdays, Sundays, and U.S. market holidays. The accrued amount would then be distributed on the next business day, a mechanism Strategy describes as the next evolution of its “digital credit” product line.

    Mechanics Designed to Mimic Cash-Like Yield Instruments

    The proposal’s stated objective is to make the preferred securities behave more like liquid cash or short-term yield instruments. By increasing accrual frequency, Strategy intends to dampen ex-dividend price swings, deepen secondary-market liquidity, and stimulate investor demand. For STRC specifically, the company plans to anchor the trading price near its $100 par value through a standing facility: issuing new shares when the price trades above $100 and repurchasing when it falls below. This follows a prior shift from monthly to semi-monthly dividends that narrowed ex-dividend price drops from 49 basis points to 36 basis points. Management believes daily accruals could compress volatility further, though it emphasizes the outcome is not guaranteed.

    Record-Date Frequency Jumps 15-Fold to 90-Fold

    Under the new regime, STRC would move from 24 record dates per year to 365—or 366 in leap years—while STRF, STRK, and STRD would transition from four quarterly dates to daily accruals. That represents roughly a 15-times increase in accrual events for STRC and a 90-times increase for the other three series. Commenting on the strategic rationale, Saylor stated, The stronger STRC is, then the better a platform (4:03) it is for all of these other innovative products. He later added, We think these amendments should help us issue the strongest digital credit in the world, and improve stretch, and that should also help us create the best equity in the world, MSTR, which will further help us increase our Bitcoin and our Bitcoin per share.

    Approval Timeline and Implementation Schedule

    The proposal remains subject to shareholder approval. If ratified, the rollout would be staggered: STRC would initiate daily accruals on November 1, 2026, with the first payment scheduled for November 2, 2026. STRF, STRK, and STRD would complete their existing fourth-quarter 2026 dividend cycle before switching to daily accruals on January 1, 2027. As of the latest session, STRC traded at $98.54, up 0.23%, while MSTR shares declined 1.86% to $158.61. Strategy’s Bitcoin treasury now holds approximately 846,000 BTC, carrying roughly $8 billion in unrealized gains after previously reflecting about $10 billion in unrealized losses.

    Why This Matters

    Strategy’s proposal represents a novel attempt to blend traditional preferred-stock mechanics with the continuous-settlement ethos of digital assets. By eliminating the discrete ex-dividend cliffs that currently create predictable price drops, the company seeks to create a hybrid instrument that offers the yield profile of a money-market fund with the credit backing of a Bitcoin-intensive corporate balance sheet. Success could set a precedent for other corporations exploring tokenized or digitally native capital structures, particularly those using volatile reserve assets like Bitcoin to underwrite fixed-income obligations. The staggered implementation also signals regulatory and operational caution, giving markets time to adapt pricing models and custody workflows for daily-accrual securities.

    Frequently Asked Questions

    Which Strategy preferred securities are affected by the daily-accrual proposal?

    The proposal covers all four series: STRF, STRC, STRK, and STRD.

    When would the new daily-accrual schedule take effect if shareholders approve?

    STRC would begin daily accruals on November 1, 2026, with the first payment on November 2, 2026. STRF, STRK, and STRD would switch on January 1, 2027, after completing their Q4 2026 dividend cycle.

    How does Strategy plan to maintain STRC’s price near its $100 par value?

    The company intends to sell new STRC shares when the market price exceeds $100 and buy back shares when it trades below $100, effectively creating a soft peg around the par value.

  • Strive Challenges MSCI Proposal to Exclude Bitcoin Treasuries, Calls for ‘Provide future qualification path’

    Strive Challenges MSCI Proposal to Exclude Bitcoin Treasuries, Calls for ‘Provide future qualification path’

    Key Highlights

    • Strive Asset Management, the fifth-largest Bitcoin treasury, has formally challenged MSCI’s proposal to exclude crypto treasury companies from its global index, arguing firms like Strategy and Strive qualify as “operating companies” rather than passive investment vehicles.
    • MSCI’s 2026 consultation framework represents a “material improvement” over the 2025 version but fails to define “operating assets” clearly, leaving firms without a rule capable of determining index eligibility.
    • MSCI plans to finalize its decision by mid-October after a feedback window closing end of September, with potential index rebalancing in November that could reshape the crypto treasury segment’s institutional visibility.

    Strive Mounts Formal Challenge to MSCI Index Exclusion Proposal

    Strive Asset Management has submitted forceful feedback opposing MSCI’s proposal to remove companies holding significant Bitcoin treasuries from its global equity indexes. As the fifth-largest corporate Bitcoin holder, Strive acknowledged that MSCI’s 2026 consultation framework constitutes a “material improvement” over the 2025 proposal, which directly targeted crypto treasuries for exclusion. However, the firm argues the index provider is now asking the right question but has “yet to supply a rule capable of answering it.”

    The core dispute centers on classification: MSCI contends that companies like Strategy (formerly MicroStrategy) that “buy and hoard assets (including crypto assets)” are “non-operating” companies that should be axed from the index. Strive counters that this characterization ignores the active financial operations these firms conduct. In its submission, Strive explicitly asked MSCI to define the meaning of “operating asset,” insisting that Bitcoin treasury companies fit the profile of an “operating company,” citing Strategy’s digital credit products tied to Bitcoin reserves as evidence of ongoing commercial activity.

    Digital Credit Model Central to Operating Company Argument

    Strive’s defense rests on the operational nature of the digital credit model employed by Strategy and mirrored in Strive’s own $2 billion Bitcoin reserve strategy. Strategy’s preferred stock series—including STRC, STRF, STRK, and STRD—pay bi-monthly and quarterly dividends, with a proposal to transition the latter four to daily interest payments. This digital credit is backed by Strategy’s massive Bitcoin and cash reserves to ensure uninterrupted yield payouts. When shortfalls are foreseen, Strategy sells portions of its Bitcoin holdings to replenish cash reserves, a playbook Strive says it replicates.

    Companies that issue digital credit belong on the operating side of that line. They use balance sheet assets as inputs, apply continuing financial and risk-management processes to them, and produce differentiated financial claims with payment and risk characteristics the underlying assets.

    For Strive, this operational profile aligns with traditional financial institutions. “For Strive, this fits an ‘operating company’ just like any insurer, bank, or other financial firms,” the source notes. The firm further insists MSCI should at minimum offer a “future qualification path” allowing firms to make necessary adjustments rather than face summary exclusion.

    TD Securities Echoes Industry Pushback on Passive Classification

    Strive’s position has found support from established financial institutions. TD Securities submitted similar arguments against the MSCI proposal, challenging the characterization of Bitcoin treasury operations as passive. The investment bank emphasized the sophistication of the product suites being developed:

    The primary product is not Bitcoin itself, but rather differentiated forms of Bitcoin-backed exposure tailored to varying investor preferences for risk, duration, leverage, yield and liquidity. That strikes us as a corporate activity, not a passive one.

    This institutional backing underscores a broader industry consensus that the digital credit model represents active financial engineering rather than mere asset accumulation. The distinction carries significant implications for how index providers classify emerging corporate structures built around digital asset reserves.

    MSCI Timeline and Stakes for Crypto Treasury Sector

    MSCI opened its feedback window last month, set to close by the end of September. The index provider plans to announce final results by mid-October and, if changes are adopted, rebalance the index by November. The decision will “massively affect the crypto treasuries segment,” potentially determining whether companies employing Bitcoin treasury strategies maintain access to passive index flows and institutional benchmark inclusion.

    It remains unclear whether MSCI will withdraw or modify the proposal following industry feedback. Strive’s intervention highlights the high stakes: without a clear, workable definition of “operating assets” and a pathway for qualification, the index provider risks imposing a binary classification that fails to capture the operational reality of firms generating yield, managing risk, and issuing structured financial products backed by digital asset reserves.

    Why This Matters

    The MSCI consultation represents a pivotal regulatory-adjacent moment for the corporate Bitcoin treasury phenomenon. Index inclusion drives billions in passive capital allocation; exclusion would deny crypto treasury firms access to index-tracking ETFs, pension fund mandates, and benchmark-relative institutional portfolios. The outcome will influence whether the digital credit model—transforming volatile Bitcoin reserves into structured yield products—is recognized as legitimate financial intermediation or dismissed as speculative asset hoarding. A precedent set here could extend to other index providers (FTSE Russell, S&P Dow Jones) and shape how regulators and accounting standard-setters treat Bitcoin on corporate balance sheets. The September feedback deadline and October decision create a compressed timeline for an industry still defining its operational taxonomy.

    Frequently Asked Questions

    What is MSCI’s current proposal regarding crypto treasury companies?
    MSCI proposes classifying companies that “buy and hoard assets (including crypto assets)” such as Strategy as “non-operating” companies and removing them from its global equity indexes. The consultation framework was released in 2026 as an update to a 2025 proposal that directly targeted crypto treasuries.
    Why does Strive argue it qualifies as an “operating company”?
    Strive contends that its digital credit model—issuing preferred stocks (STRC, STRF, STRK, STRD) paying bi-monthly, quarterly, and potentially daily dividends backed by Bitcoin reserves, with active risk management including selling BTC to cover shortfalls—constitutes ongoing financial operations comparable to insurers or banks.
    When will MSCI make a final decision and what happens next?
    The feedback window closes at the end of September. MSCI plans to announce final results by mid-October and, if changes are adopted, rebalance affected indexes by November. The decision could determine whether crypto treasury firms retain index inclusion and associated passive capital flows.
  • Sequans Completes Bitcoin Treasury Exit, Sells Final 314 BTC

    Sequans Completes Bitcoin Treasury Exit, Sells Final 314 BTC

    Key Highlights

    • Sequans Communications (NYSE: SQNS) has sold its remaining 314 Bitcoin, completing a treasury exit that leaves the company with no cryptocurrency holdings and a debt-free balance sheet outside government-backed research financing.
    • The Paris-based semiconductor firm reported product revenue growth exceeding 80% year-over-year in Q2 2026, with its six-month product backlog more than tripling compared to the prior year.
    • CEO Dr. Georges Karam framed the exit as a strategic refocus on the company’s core 5G/4G cellular IoT and software-defined radio chip business, contrasting with a broader corporate trend of Bitcoin accumulation by firms such as Strive and Strategy.

    Sequans Closes Bitcoin Chapter to Sharpen Semiconductor Focus

    Sequans Communications, the French designer of 5G and 4G cellular Internet of Things chips and software-defined radio transceivers, announced on September 24 that it has finalized its Bitcoin treasury strategy by selling the 314 Bitcoin remaining on its balance sheet as of June 30, 2026. The transaction concludes a wind-down first signaled when the company redeemed its convertible debt in May 2026. Sequans now holds what it describes as a strong cash position, a simplified capital structure, and no debt outside of government-financed research programs, positioning the firm as a pure-play semiconductor company.

    CEO Emphasizes Disciplined Execution and Financial Clarity

    Dr. Georges Karam, Chief Executive Officer of Sequans, characterized the move as a deliberate step to strengthen the company’s financial foundation. “The completion of our Bitcoin treasury strategy marks an important milestone for Sequans and reflects the disciplined execution of a strategy designed to strengthen our financial foundation,” said Dr. Georges Karam, CEO of Sequans. He added that the proceeds, combined with the earlier debt redemption, give management the flexibility to concentrate fully on the company’s long-term growth roadmap. “By eliminating our convertible debt, monetizing our remaining Bitcoin holdings in a measured and opportunistic manner, and emerging with a very strong balance sheet, we have positioned the Company to focus entirely on executing our long-term semiconductor growth strategy,” Karam said.

    Exit Runs Counter to Corporate Accumulation Trend

    The decision places Sequans at odds with a still-expanding corporate Bitcoin trend. Earlier in September, Strive increased its treasury to 26,355 BTC with a 1,355-Bitcoin purchase, while Strategy—formerly known as MicroStrategy—added another 950 Bitcoin in its first acquisition since August. Sequans, founded in 2003 and headquartered near Paris, explicitly framed its departure as a return to a pure-play semiconductor profile rather than a directional bet on Bitcoin’s price trajectory.

    Core Business Momentum Accelerates Amid 5G eRedCap and RF Transceiver Push

    The treasury exit coincides with accelerating operational performance. Sequans reported product revenue growth of more than 80% year-over-year in the second quarter of 2026, while its six-month product backlog at quarter-end more than tripled versus the same period a year earlier. The company is advancing its 5G eRedCap platform and building commercial momentum for a recently launched RF transceiver. In Q2 2026, Sequans secured a first drone design win and cited growing interest across defense, drone, and space markets for its portfolio, which spans LTE-M, NB-IoT, Cat 1bis, and 5G RedCap and eRedCap platforms.

    Why This Matters

    Sequans’ Bitcoin exit signals a maturation phase for corporate treasury strategies that experimented with cryptocurrency as a reserve asset during 2020–2022. While high-profile accumulators such as Strategy continue to treat Bitcoin as a primary treasury asset, Sequans’ reversal underscores a segment of public companies prioritizing balance-sheet simplicity and investor clarity over speculative upside. The move also highlights how semiconductor firms exposed to the 5G IoT transition—particularly in RedCap and eRedCap segments targeting industrial, defense, and aerospace applications—are converting design-win pipelines into revenue at scale. With a debt-free structure and a backlog tripling year-over-year, Sequans presents a case study in capital reallocation from alternative assets back into core R&D and go-to-market execution.

    Frequently Asked Questions

    How many Bitcoin did Sequans sell in its final tranche?

    Sequans sold 314 Bitcoin, which represented the full remaining balance held on its books as of June 30, 2026.

    Is Sequans completely debt-free after this transaction?

    The company states it is debt-free outside of government-financed research obligations, having redeemed its convertible debt in May 2026 and now monetized all cryptocurrency holdings.

    What are Sequans’ primary growth drivers following the Bitcoin exit?

    Management is focused on its 5G eRedCap platform, a new RF transceiver for software-defined radio, and expanding design wins in defense, drone, and space markets, supported by a product backlog that has more than tripled year-over-year.

  • Strategy Pays $100M Premium to Repurchase Bitcoin It Previously Sold

    Strategy Pays $100M Premium to Repurchase Bitcoin It Previously Sold

    Key Highlights

    • Strategy (formerly MicroStrategy) incurred a $100.2 million opportunity cost after selling 6,948 BTC at an average of $62,150 in summer 2024 and repurchasing 5,553 BTC at an average of $80,207 this autumn.
    • The company’s founder Michael Saylor and CEO Phong Le stated the sales were executed for “messaging purposes” to “inoculate the market” rather than due to cash needs, despite SEC filings citing dividend funding.
    • Strategy still holds 1,363 fewer BTC than its June peak of 847,363, and replacing the remaining coins at current prices would require approximately $100 million more.

    Summer Sale, Autumn Rebuy: A Costly Roundtrip

    Strategy, the corporate bitcoin treasury pioneer founded by Michael Saylor, has spent recent weeks reacquiring 5,553 of the 6,948 bitcoin it liquidated between May and August 2024. The roundtrip trade has proven expensive: the company sold at an average price of $62,150 per coin, generating $345.1 million in proceeds, only to repurchase at an average of $80,207 — a 29% premium that cost shareholders $445.4 million for the same 5,553 coins. The realized opportunity cost of being out of the market during bitcoin’s summer-to-autumn rally exceeds $100.2 million.

    The first repurchase tranche arrived during the week ending August 30, when Strategy acquired 4,603 BTC at $80,318 each for $369.7 million, funded by newly issued stock that diluted common shareholders. A follow-up purchase of 950 BTC at $79,670 apiece was executed last week using cash instead of equity. Despite these outlays, the company’s holdings stand at 846,000 BTC — still 1,363 coins short of the 847,363 it held as recently as June 21. Reacquiring the remaining shortfall would demand roughly another $100 million at prevailing market prices.

    Sales Driven by Narrative, Not Necessity

    According to Saylor and CEO Phong Le, the motivation for the initial sales was not liquidity pressure but strategic messaging. On a May 5 call with analysts, Saylor stated the company would sell bitcoin “just to inoculate the market” and send a signal to news publications that it had done so. He later told Fortune, “the skeptics and the short-sellers don’t recognize that we’re just selling a $BTC derivative, and we have the option to sell the $BTC.” Both executives appeared on numerous television interviews and podcasts to frame the sales as deliberate communication rather than financial distress.

    However, official SEC filings for the sales cited dividend funding as the use of proceeds — despite the company holding sufficient cash to cover those dividends without liquidating bitcoin. The discrepancy between public statements and regulatory disclosures has drawn scrutiny from analysts and shareholders alike.

    Leadership Remains Unapologetic

    Neither Saylor nor Le has expressed regret over the sequence of trades. On the day of Strategy’s fourth sale of the year, Le posted, “This is the Digital Credit Capital Framework at work.” He subsequently told Bloomberg that it was “the right trade at the time to sell $BTC.” Le added, “It’s a two-way strategy. There will be times when it makes sense to sell bitcoin.” The comments underscore a philosophical shift toward active portfolio management — buying and selling based on capital market conditions — rather than the perpetual accumulation strategy the company previously championed.

    Why This Matters

    Strategy’s bitcoin treasury operations have long served as a bellwether for corporate digital asset adoption. The summer 2024 sell-and-rebuy episode marks the first significant deviation from the company’s “never sell” narrative, testing investor confidence in a model that previously relied on unwavering conviction. The $100 million-plus opportunity cost quantifies the financial penalty of market-timing decisions in a volatile asset class. Furthermore, the divergence between management’s public rationale (“messaging”) and SEC filing rationale (dividend funding) raises governance questions about transparency. With 1,363 BTC still un-replaced and bitcoin trading near multi-month highs, the company faces a choice: deploy additional capital at elevated prices or accept a permanently reduced bitcoin position — either outcome carrying implications for shareholders who viewed Strategy as a pure-play bitcoin proxy.

    Frequently Asked Questions

    How much bitcoin does Strategy currently hold compared to its June 2024 peak?
    Strategy holds 846,000 BTC as of the latest disclosure, down from 847,363 BTC on June 21, 2024 — a shortfall of 1,363 coins.
    What was the stated reason for the summer 2024 bitcoin sales?
    Michael Saylor and CEO Phong Le publicly stated the sales were for “messaging purposes” to “inoculate the market” and demonstrate the company’s ability to sell bitcoin as a derivative-like instrument. SEC filings, however, listed dividend funding as the use of proceeds.
    Has Strategy completed its repurchase program?
    No. The company has repurchased 5,553 of the 6,948 BTC sold. Replacing the remaining 1,363 BTC at current market prices would require approximately $100 million in additional capital.
  • VanEck Flags Heavy Executive Dilution at Bitcoin Treasury Firm Metaplanet

    VanEck Flags Heavy Executive Dilution at Bitcoin Treasury Firm Metaplanet

    Key Highlights

    • VanEck’s September 2026 Bitcoin ChainCheck flags executive stock-option capacity equal to approximately 22.4% of Metaplanet’s shares outstanding, raising dilution concerns for shareholders.
    • The analysis emphasizes that Metaplanet’s Bitcoin treasury itself remains intact and growing; the scrutiny focuses on capital structure efficiency rather than any sale of Bitcoin holdings.
    • As corporate Bitcoin adoption accelerates in Asia, investors may increasingly evaluate treasury strategies on Bitcoin-per-share accretion net of dilution, not just absolute BTC balances.

    VanEck Spotlights Dilution Risk in Metaplanet’s Bitcoin Treasury Model

    Metaplanet has emerged as one of the most closely watched corporate Bitcoin accumulators outside the United States, but a new analysis from VanEck is directing investor attention toward a less-visible component of the strategy: the equity compensation framework supporting it. In its mid-September 2026 Bitcoin ChainCheck, authored by Matthew Sigel, VanEck highlighted that Metaplanet’s executive stock-option pool represents capacity equivalent to roughly 22.4% of shares outstanding — a figure the firm characterizes as material for a company whose investment thesis increasingly hinges on growing Bitcoin exposure on a per-share basis.

    The Per-Share Math Behind the Headline Holdings

    Corporate Bitcoin strategies are typically discussed in terms of absolute treasury size — how many BTC a company holds. VanEck’s analysis argues that metric alone can obscure a critical dynamic: the denominator. If a firm expands its Bitcoin reserves while simultaneously issuing significant new equity or options, existing shareholders may own a shrinking slice of that treasury even as the headline balance rises. That tension is central to VanEck’s assessment of Metaplanet, where a roughly 15% reduction in executive base salaries sits alongside what the firm describes as substantial equity-based compensation.

    Capital Structure Scrutiny, Not Treasury Critique

    VanEck is explicit that this is not a story about Metaplanet liquidating its Bitcoin. The Japanese firm remains one of Asia’s most aggressive listed Bitcoin accumulators, and the ChainCheck makes clear the criticism targets the capital structure surrounding the treasury, not the treasury itself. The use of stock options to align management with shareholders is standard practice across listed markets; the distinction here is one of scale relative to a strategy explicitly marketed on Bitcoin-per-share growth. When dilution becomes part of the treasury math, VanEck suggests, it warrants the same analytical rigor applied to the acquisition side of the ledger.

    Why This Matters

    As more public companies across Asia and globally adopt Bitcoin treasury strategies, the framework for evaluating them is evolving. Absolute BTC holdings were a sufficient proxy for conviction in the early innings; the next phase of scrutiny will likely center on accretive efficiency — how much Bitcoin per share is actually being added after accounting for share-based compensation, at-the-market offerings, convertible debt, and other dilutive instruments. Metaplanet’s high-profile position makes it a bellwether for how the market prices that trade-off. Investors comparing corporate Bitcoin vehicles may soon demand normalized metrics such as “BTC per fully diluted share” alongside raw treasury totals, pushing boards to optimize capital structure with the same intensity they apply to procurement.

    Frequently Asked Questions

    Is Metaplanet selling its Bitcoin holdings?

    No. VanEck’s analysis explicitly states that Metaplanet is not selling its Bitcoin. The critique focuses on the potential dilution from executive stock options, not on any disposition of the treasury itself.

    What does the 22.4% dilution figure represent?

    The figure represents the total capacity of Metaplanet’s executive stock-option pool as a percentage of shares outstanding, per VanEck’s Bitcoin ChainCheck. It reflects the maximum potential dilution if all options were exercised, not dilution that has already occurred.

    Why does dilution matter for a Bitcoin treasury strategy?

    If a company’s investment thesis is built on increasing Bitcoin exposure per share, issuing new shares or options can erode that per-share gain even while the total Bitcoin balance grows. Shareholders end up owning a smaller fraction of the treasury, which can offset the benefit of additional BTC purchases.

  • REX Launches 2x Leveraged ETF Tied to Bitcoin Treasury Firm Strive

    REX Launches 2x Leveraged ETF Tied to Bitcoin Treasury Firm Strive

    Key Highlights

    • REX Shares and Tuttle Capital Management launched the T-REX 2X Long ASST Daily Target ETF (ticker: ASSX) on Cboe, offering 200% daily leveraged exposure to Strive shares.
    • Strive, a Bitcoin treasury company, holds 25,000 BTC—ranking as the fifth-largest publicly traded corporate Bitcoin holder—and recently acquired 469 BTC via its SATA perpetual preferred stock.
    • The fund resets leverage daily and does not hold Bitcoin directly; Strive shares closed Friday at $30.09, up 6.4%, above the $29.40 average analyst price target.

    REX and Tuttle Debut Double-Leveraged Strive ETF on Cboe

    REX Shares and Tuttle Capital Management have expanded their lineup of single-stock leveraged exchange-traded funds with the launch of the T-REX 2X Long ASST Daily Target ETF, which began trading Friday on Cboe Global Markets under the ticker ASSX. The fund is engineered to deliver twice the daily percentage change of Strive (ticker: ASST) shares before fees and expenses, providing traders with a magnified bet on the Bitcoin treasury company’s equity performance rather than on the cryptocurrency itself.

    Mechanics and Distinction From Spot Bitcoin ETFs

    Unlike the spot Bitcoin ETFs that have dominated inflows this year, ASSX holds no Bitcoin and does not seek to track the price of BTC. Instead, it uses swap agreements and other derivatives to achieve 200% daily exposure to Strive’s share price. Because the fund resets its leverage at the end of each trading session, returns over periods longer than a single day can diverge materially from two times the cumulative performance of Strive stock—a characteristic common to all daily-reset leveraged ETFs and a critical risk factor for investors holding beyond intraday horizons.

    Strive’s Bitcoin Treasury Profile

    Strive, founded by Vivek Ramaswamy and Anson Frericks, operates as both an asset manager and a corporate Bitcoin accumulator. According to data from BitcoinTreasuries.NET, the company holds approximately 25,000 BTC, placing it fifth among publicly traded corporate holders behind MicroStrategy (now Strategy), Marathon Digital, Riot Platforms, and Hut 8. Strive financed its most recent acquisition of 469 BTC through sales of its SATA perpetual preferred stock, a structure designed to avoid shareholder dilution while expanding the treasury.

    Why This Matters

    The launch of ASSX signals growing sophistication in the crypto-adjacent ETF ecosystem, moving beyond direct spot exposure into derivative instruments tied to Bitcoin-correlated equities. Strive’s unique model—combining asset management with a corporate treasury strategy—creates a distinct risk-return profile: its share price reflects both Bitcoin’s volatility and the market’s valuation of its capital-allocation decisions. For traders, ASSX offers a tool to express high-conviction, short-term views on Strive specifically, while the broader suite of 2x ETFs from REX and Tuttle—covering Strategy (MSTR), BitMine (BITF), Cipher Mining (CIFR), Circle (CRCL), and SharpLink (SBET)—enables sector-wide leveraged plays. With Strive shares trading above the consensus 12-month price target of $29.40 (per S&P Global), the market appears to be pricing in continued treasury expansion, though the daily-reset mechanism makes ASSX unsuitable for passive long-term holders.

    Frequently Asked Questions

    Does ASSX hold Bitcoin directly?
    No. ASSX does not hold Bitcoin or track its price. It seeks 200% of the daily performance of Strive (ASST) shares through derivative contracts.
    How does the daily leverage reset affect returns?
    Because ASSX resets its 2x leverage daily, holding the fund for more than one trading day can result in returns that differ significantly from twice Strive’s cumulative performance due to compounding effects, especially in volatile markets.
    What other 2x leveraged ETFs do REX Shares and Tuttle Capital Management offer?
    The firms also provide 2x ETFs linked to Strategy (MSTR), BitMine (BITF), Cipher Mining (CIFR), Circle (CRCL), and SharpLink (SBET).
  • VanEck Labels Metaplanet ‘Bad,’ Calls Executive Pay a ‘Shareholder Trap’

    VanEck Labels Metaplanet ‘Bad,’ Calls Executive Pay a ‘Shareholder Trap’

    Key Highlights

    • VanEck rates Metaplanet’s executive compensation “Bad” due to a 14.7% option pool driving shareholder dilution, far exceeding the 4.0% peer average among Digital Asset Treasury companies.
    • Metaplanet’s officer exposure stands at 8.2% (10.4x the 0.8% average) and its largest individual officer position at 3.8% (5.9x the 0.6% average), with no performance conditions beyond continued service.
    • VanEck proposes canceling approximately 273 million shares added via an “Evergreen” mechanism, replacing rights with a smaller shareholder-approved plan tied to Bitcoin per fully diluted share, and adopting a written equity-grant timing policy.

    VanEck Flags Metaplanet’s Executive Compensation as “Bad”

    Global investment manager VanEck has published a comparative analysis of executive compensation across the 10 largest Digital Asset Treasury companies (DATs), placing Metaplanet in the “Bad” category. The firm’s report highlights that Metaplanet’s compensation structure adds to shareholder dilution, citing a 14.7% option pool on a fully diluted basis, officer exposure of 8.2%, and a largest individual officer position of 3.8%.

    Peer Comparison: Strategy, BitMine, and Others Rated “Good”

    By contrast, six peers — Strategy, BitMine, Hyperliquid Strategies, Sharplink, Tron, and Bit Digital — earned a “Good” rating. VanEck attributes this to fixed pools, mandatory shareholder approval for increases, and officer exposure of 1% or less. For context, Strategy maintains a fixed 8.35 million-share pool (approximately 2% of fully diluted shares) with executive exposure of 0.5%. BitMine’s pool sits at 3.2% with officer exposure around 1%. Three companies — Twenty One Capital, Strive, and Forward Industries — were placed in the “Acceptable” band due to weaker safeguards.

    Metaplanet’s Dilution Mechanics and Historical Context

    Often dubbed Japan’s MicroStrategy, Metaplanet’s compensation framework originated when the company was a struggling hotel operator and was designed to protect executive pay from dilution. After its pivot to a Bitcoin treasury strategy, the mechanism remained, allowing the executive option pool to expand as the firm issued shares to fund Bitcoin purchases. By mid‑2026 the pool had reached 319.5 million potential shares (about 20% of the company) on a fully diluted basis. On 18 August 2026 Metaplanet removed the automatic “Evergreen” mechanism but retained the enlarged pool. Then on 11 September it rolled back the conversion ratio to its pre‑September 2025 level, cutting the pool by 41% to 188.2 million shares. However, 82.8 million shares had already been issued to insiders, leaving 105.4 million potential new shares (roughly 7% of the company). Compared with the other nine DATs, Metaplanet’s 14.7% plan pool is 3.7x the 4.0% peer average, officer exposure is 10.4x the 0.8% average, and its largest officer position is 5.9x the 0.6% average. Unlike Strategy, BitMine, and Strive, Metaplanet’s rights carry no performance conditions beyond continued service.

    VanEck’s Proposed Remediation Steps

    To address these concerns, VanEck has outlined four structural changes: first, cancel approximately 273 million shares added through the adjustment mechanism; second, replace the remaining rights with a smaller shareholder‑approved plan; third, link compensation to Bitcoin per fully diluted share; and fourth, adopt a written equity‑grant timing policy. VanEck estimates that, before the recent reductions, management dilution could have absorbed roughly 20% of the economic value created through Bitcoin purchases, leaving shareholders with about 80% in its analysis.

    Market Context: Bitcoin Holdings and Stock Performance

    Metaplanet’s Bitcoin holdings have reached 43,000 BTC, valued at $3.5 billion. The company’s stock traded at ¥243.00 after a 2.10% gain in the most recent session, though it has declined nearly 50% year‑to‑date, amplifying existing investor concerns about dilution and governance.

    Why This Matters

    The VanEck report underscores a growing focus on governance quality within the Digital Asset Treasury sector. As more companies adopt Bitcoin‑centric balance sheets, the alignment of executive incentives with shareholder value becomes critical. Metaplanet’s legacy compensation structure — designed for a different business model — illustrates how unchanged mechanisms can lead to excessive dilution, eroding the very value creation that the treasury strategy aims to deliver. The peer group’s “Good” ratings demonstrate that fixed pools, shareholder approval gates, and performance‑linked grants are achievable standards. VanEck’s specific remediation proposals provide a concrete roadmap for Metaplanet and a benchmark for other DATs evaluating their own compensation frameworks.

    Frequently Asked Questions

    Why did VanEck rate Metaplanet’s executive compensation “Bad”?
    VanEck assigned the “Bad” rating because Metaplanet’s 14.7% option pool is 3.7 times the peer average, officer exposure is 10.4 times the average, and its largest officer position is 5.9 times the average. Additionally, the rights lack performance conditions beyond continued service.
    What is the “Evergreen” mechanism and what did Metaplanet do about it?
    The “Evergreen” mechanism automatically increased the option pool as the company issued shares. Metaplanet removed this automatic feature on 18 August 2026 but retained the enlarged pool that had already accumulated.
    What changes does VanEck propose for Metaplanet?
    VanEck recommends canceling roughly 273 million shares added via the adjustment mechanism, replacing the remaining rights with a smaller shareholder‑approved plan, linking compensation to Bitcoin per fully diluted share, and implementing a written equity‑grant timing policy.
  • H100 CEO Buys Shares as Bitcoin Treasury Holds 3,506 BTC

    H100 CEO Buys Shares as Bitcoin Treasury Holds 3,506 BTC

    Key Highlights

    • H100 CEO Eirik Grøttum increased his indirect stake by 407,163 shares through Kode Oslo AS for SEK 621,887, bringing total associated holdings to 5,399,464 shares.
    • H100 maintains its Bitcoin treasury at 3,506.4 BTC following the August acquisition of NSD AS, which added 2,455.37 BTC via a share-for-share transaction valued at approximately SEK 1.47 billion.
    • The company is evaluating future share buybacks under new Swedish rules effective December 5, though no repurchase program has been authorized.

    CEO Eirik Grøttum Expands Indirect Ownership in H100 Group

    H100 Group chief executive Eirik Grøttum has added to his indirect equity position in the Swedish Bitcoin treasury company through a series of purchases executed by Kode Oslo AS, a closely associated entity. According to a primary-insider disclosure filed on September 17, Kode Oslo acquired 405,663 shares on September 15 at an average price of SEK 1.53 per share, followed by an additional 1,500 shares purchased on August 19 at SEK 1.40 per share. The combined outlay totaled SEK 621,887 at a blended average of SEK 1.53 per share.

    Grøttum serves on the board of Kode Oslo, holds a 20% ownership stake, and participates in its investment decisions, according to H100’s regulated notice. A second vehicle, Olav Grøttum Holding AS—wholly owned by Grøttum—holds a further 2,627,677 shares. Following the latest transactions, the two associated businesses collectively control 5,399,464 H100 shares. Kode Oslo’s standalone position now stands at 2,771,787 shares. The disclosure emphasizes that the transactions involve equity purchases by the CEO’s related parties and do not represent a new Bitcoin acquisition by H100 itself.

    Bitcoin Treasury Unchanged at 3,506.4 BTC After Landmark Acquisition

    H100’s reported Bitcoin treasury remains at 3,506.4 BTC, a figure established after the company completed its acquisition of NSD AS on August 10. That transaction, which H100 described as “the largest M&A transaction ever completed in the European Public Bitcoin Equity sector” and the first public-market acquisition executed on a Bitcoin-for-Bitcoin basis, brought 2,455.37 BTC into the group through a reorganization that included Moonshot AS and PDI AS. The acquired entities carried no outstanding financial debt.

    No cash changed hands in the deal. Instead, H100 issued 790,534,666 new shares to the sellers at SEK 1.86 each, implying total consideration of approximately SEK 1.47 billion. The issuance expanded H100’s outstanding share count to 1,128,931,358, with the new shares representing roughly 70% of the post-closing capital. Geir Harald Hansen received a controlling stake of approximately 69.2% through 781,676,551 shares, according to the company’s interim report. The agreed valuation benchmarked Bitcoin at SEK 598,926.69 (approximately $62,900), derived from the Coinbase BTC/SEK spot price at a specified July 31 reference time; this was an acquisition valuation metric, not an open-market purchase price for the 2,455.37 BTC transferred.

    From Modest Beginnings to Bitcoin-Centric Balance Sheet

    H100’s Bitcoin strategy began modestly in May 2025 with an initial purchase of 4.39 BTC. The company subsequently raised equity and convertible financing to grow its holdings, reaching 1,051.03 BTC by June 30, 2026, before the Norwegian acquisition nearly tripled the position. H100 characterizes itself as a technology company serving health and longevity providers while actively managing a Bitcoin treasury strategy.

    The scale of the Bitcoin exposure has made reported earnings sensitive to cryptocurrency price movements. In its second-quarter report, H100 posted an operating loss of SEK 88.7 million and a pre-tax loss of SEK 98.2 million, of which SEK 93.3 million comprised non-cash items. For the first half of 2026, the pre-tax loss widened to SEK 253.6 million while operating cash flow was negative SEK 12.7 million. The equity ratio stood at 86% at June 30. As previously reported, much of the quarterly accounting loss stemmed from a non-cash write-down tied to Bitcoin’s lower valuation during the period.

    Grøttum, who assumed the CEO role on August 11—one day after the NSD acquisition closed—wrote in the interim report that simply raising funds to accumulate Bitcoin was “unlikely to be sufficient on its own” for treasury companies. He outlined plans to deploy capital allocation, capital-markets activity, acquisitions, and operating cash flow alongside the Bitcoin holdings. Grøttum’s background spans software development, quantitative trading, asset management, and fintech; he previously served as CEO of Moonshot AS and worked with H100 Chief Investment Officer Peter C. Warren managing Bitcoin holdings belonging to Geir Harald Hansen through Moonshot. His appointment moved former CEO Johannes Wiik into the chief operating officer role.

    Why This Matters

    H100’s trajectory illustrates the evolving playbook for publicly listed companies adopting Bitcoin as a primary treasury asset. The NSD AS acquisition—structured as a share-for-share exchange without cash—demonstrates a novel consolidation model in the European public markets, effectively rolling up private Bitcoin holdings into a listed vehicle. The transaction also highlights the accounting volatility inherent in fair-value measurement of digital assets under current reporting standards, where non-cash impairments can dwarf operating results. Meanwhile, the CEO’s personal accumulation of shares through controlled entities signals alignment with the company’s strategy, even as the firm evaluates new capital-management tools such as share repurchases under upcoming Swedish regulatory changes. Investors should monitor whether H100 can translate its Bitcoin-denominated balance sheet into sustainable operating cash flows from its health-technology business lines.

    Frequently Asked Questions

    How many H100 shares do Eirik Grøttum’s associated entities now control?

    Following the September purchases, Kode Oslo AS holds 2,771,787 shares and Olav Grøttum Holding AS holds 2,627,677 shares, for a combined total of 5,399,464 shares.

    Did H100 buy more Bitcoin in connection with the CEO’s share purchases?

    No. The insider disclosure covers equity purchases by the CEO’s closely associated companies only. H100’s disclosed Bitcoin treasury remains at 3,506.4 BTC, unchanged since the August 10 acquisition of NSD AS.

    Is H100 launching a share buyback program?

    Not at this stage. The company noted that new Swedish rules effective December 5 will permit repurchases on the NGM Nordic SME exchange where H100 trades, and CEO Eirik Grøttum indicated buybacks could become a capital-allocation option if shares trade below net asset value. However, H100 explicitly stated that no decision has been taken to repurchase shares; any future program would require shareholder authorization, a board resolution, and proper disclosure.

  • TD Cowen Sees 90% Upside for Smarter Web as Preferred Share Plan Advances

    TD Cowen Sees 90% Upside for Smarter Web as Preferred Share Plan Advances

    TD Cowen has raised its price target for The Smarter Web Company to £0.73 ($0.99) from £0.64 ($0.87) while maintaining a Buy rating, following the Bitcoin treasury firm’s proposal for a new perpetual preferred-share offering.

    In a Monday note to clients, analysts led by Lance Vitanza said the planned MORE preferred shares could provide another source of long-term capital and expand financing options for the London-listed company. Shares traded at £0.385 ($0.52) on Monday, up 1.32% from Friday’s close of £0.38 ($0.51), according to London Stock Exchange data. The revised target implies roughly 90% upside from Monday’s trading level.

    The increase partially reverses TD Cowen’s July adjustment, when the investment bank lowered its target from £1 to £0.64 after updating Bitcoin forecasts and treasury assumptions.

    Preferred Shares to Expand Capital Options

    The revised valuation follows Smarter Web’s September 11 announcement that it is considering an initial public offering of a new class of perpetual preferred shares under the reserved ticker MORE. TD Cowen said the proposed structure could give the company another route to raise long-duration capital alongside existing financing tools for its Bitcoin treasury operation.

    “More broadly, we view the initiative as evidence of increasing sophistication across the bitcoin treasury ecosystem as issuers explore preferred equity, secured credit facilities, convertible securities, and other forms of structured capital,” the analysts wrote.

    Smarter Web plans to raise between £15 million and £25 million in gross proceeds through the potential offering, with a minimum £10 million fundraising condition. Admission depends on shareholder approval and Financial Conduct Authority approval of a prospectus. The preferred shares are expected to carry a cumulative variable-rate preferential dividend paid weekly, include a liquidation preference, and grant the company redemption rights. MORE shares would not carry voting rights at general meetings. A general meeting is scheduled for September 28 for ordinary shareholders to vote on changes needed to create the new preferred-share class. If conditions are met, the securities are intended for admission to the Main Market of the London Stock Exchange.

    The proposal follows other Bitcoin treasury companies using preferred securities to raise capital. Strategy has built several preferred-stock products around its Bitcoin financing model, while Strive has used preferred equity as part of its treasury funding structure. Strategy’s STRC preferred stock was listed by Binance in July after the company expanded its use of the security for funding and dividend-related capital management. Bitfinex Securities later listed tokenized treasury products linked to several public Bitcoin holders, including a product providing economic exposure to Strategy’s STRC preferred shares.

    Bitcoin Treasury Performance and Recent Activity

    TD Cowen’s revised target came as analysts assessed Smarter Web’s Bitcoin treasury performance following a financing repayment that temporarily reduced its holdings. The company reported a Bitcoin Yield of approximately 11.5% for the year through September 2, despite an approximately 420 basis point drag caused by the July 23 repayment of the TOBAM-backed Smarter Convert instrument.

    Smarter Web sold 177.8909127 BTC to repay the financing early, using Bitcoin originally purchased with proceeds from the instrument. As crypto.news previously reported, the $11.7 million repayment occurred around two weeks before maturity and removed the potential issuance of more than 7.7 million ordinary shares associated with the convertible structure. Chief executive Andrew Webley said at the time that the convertible had provided an alternative financing source during an earlier stage of the company’s treasury expansion, but management no longer considered convertible instruments the preferred funding option for its current position.

    The repayment left Smarter Web with exactly 2,700 BTC. It resumed buying soon afterward, purchasing another 11.89 BTC and bringing holdings to 2,712 BTC in early August. That purchase moved the company to 28th place in BitcoinTreasuries’ ranking of public corporate Bitcoin holders at the time.

    Smarter Web has used several funding channels during its treasury expansion. In May, the company disclosed it had drawn £18 million from a Coinbase credit facility secured against Bitcoin, with a leverage ratio of roughly 12.19%. The facility carried a variable interest rate of 6.75% to 7.25% and could be repaid without penalty. At the time, the company had increased its holdings to 2,869 BTC after purchasing 10 BTC at an average price of £55,786 per coin. Its total investment in Bitcoin stood at £232.48 million, with an average acquisition cost of £81,032 per BTC.

    Valuation Underpinned by Bitcoin Price Forecasts

    Bitcoin was approaching $78,000 on Monday and remained approximately 38% below its all-time high near $126,000. TD Cowen’s base case assumes Bitcoin reaches roughly $100,000 by December. Its upside scenario puts the cryptocurrency at $175,000, while the downside case assumes a decline to $25,000.

    The bank had previously revised its Smarter Web valuation in July after changing its Bitcoin price assumptions. At that point, TD Cowen assigned £63 million to the company’s treasury operations and projected year-end 2026 Bitcoin holdings worth £229 million. After accounting for an estimated £18 million of net debt, the analysts arrived at an equity value of £274 million, equivalent to £0.64 per share based on 426 million fully diluted shares.

    Company Background and Growth Strategy

    Smarter Web began building its Bitcoin treasury in 2025 under its long-term “10 Year Plan.” The company started accepting Bitcoin payments in 2022 before making BTC accumulation part of its corporate treasury policy. Its Bitcoin position expanded quickly through repeated purchases during 2025 and 2026, supported by equity raises, convertible financing, and secured borrowing. The firm moved from Aquis to the London Stock Exchange’s Main Market in February 2026. TD Cowen expects Smarter Web’s acquisition activity to gradually return to the pace recorded during fiscal 2025 as the company continues developing its treasury and operating businesses.

  • Metaplanet Cuts Series 10 Stock Rights Pool 41% to Boost Bitcoin per Share

    Metaplanet Cuts Series 10 Stock Rights Pool 41% to Boost Bitcoin per Share

    Tokyo-listed Bitcoin treasury firm Metaplanet Inc. (TSE: 3350) announced on 11 September 2026 that its board of directors resolved to reduce the potential share pool under its 10th Series Stock Acquisition Rights by 41.1%, from 319,464,000 to 188,190,000 shares. The decision follows feedback from shareholders and capital market participants. Chief executive Simon Gerovich signed the notice on behalf of the company.

    Board Resolution Details

    The amendment cuts the number of shares underlying each stock acquisition right from 696 to 410, lowering the total potential pool by 131,274,000 shares. After deducting the portion already exercised, the remaining potential shares fall by 55.5%, from 236,640,000 to 105,366,000.

    Unvested rights now carry a new exercise restriction, with three equal portions becoming exercisable on 18 August 2029, 2030, and 2031 respectively. The company also withdrew its plan to transfer up to 90,000 rights to a long-term officer and employee incentive vehicle and will instead design a new compensation plan with a global consultant. The lock-up through 17 August 2031 and the JPY 10 exercise price remain unchanged. If all remaining rights are exercised, the company would receive roughly JPY 1.05 billion.

    Why Metaplanet Changed Course

    The board said it reconsidered the reference date used to calculate the shares underlying the rights, shifting it from 30 June 2026 to 1 September 2025. Metaplanet argued this better aligns the options with the period when its equity financings were executed at the highest premiums to net asset value, whereas later offerings including the September 2025 international placement were completed at more modest premiums. The company has drawn scrutiny as its floating option pool expanded alongside its share count while it pursued a strategy of raising equity to accumulate Bitcoin.

    Bitcoin Per Share Improves

    Because the fully diluted share count falls in line with the rights reduction, Metaplanet said its fully diluted Bitcoin per share improves accordingly. The company holds 43,000 BTC and reported roughly 0.0286646 BTC per effective diluted share, up from 0.0263554 as of 30 June, with the current-quarter BTC Yield at 8.8%.

    The disclosure shows one director holds 276,000 units, equal to 113,160,000 underlying shares after the cut, with 49,128,000 still exercisable. As Metaplanet expands its treasury strategy, it expects the amendment’s impact on current-year results to be immaterial.