Bitcoin’s latest decline has brought its price close to its 200-week moving average of approximately $68,000, a level that has historically been viewed as an attractive point for increasing exposure to the cryptocurrency. However, market downturns can affect Bitcoin treasury companies in different ways, depending on how they raise capital, manage their reserves and support their investment strategies.Strive is making the case that its corporate structure gives it an advantage during these periods. The company argues that its combination of preferred equity, substantial cash reserves and the absence of debt secured against its Bitcoin holdings allows it to respond to falling prices without being forced to sell its assets. It also believes that its existing preferred equity markets provide an opportunity to increase its amplification ratio when Bitcoin becomes cheaper.How Strive’s Capital Structure Could Help During Bitcoin DownturnsStrive’s argument focuses on how Bitcoin treasury companies manage their finances when the cryptocurrency market enters a prolonged decline. According to the company, there are three possible outcomes for businesses that use amplification to increase their Bitcoin exposure.The first involves companies with unfavorable debt arrangements. When Bitcoin prices fall, these businesses may face pressure to sell their holdings to meet financial obligations. Such sales can permanently reduce shareholder value because the company may lose Bitcoin during a downturn and fail to benefit fully when prices recover.The second situation involves companies that lack an effective capital-raising mechanism. Their share prices may decline alongside Bitcoin, but they may have limited ways to increase their holdings during the downturn. As a result, when Bitcoin recovers, the company could end up close to where it started without creating additional value.Strive believes the third approach offers a different outcome. Companies with liquid preferred equity and established investor demand can potentially issue more preferred shares when Bitcoin prices are lower. This can allow them to increase their Bitcoin exposure and enter the recovery period with a higher amplification ratio. The company says this is the model it has been developing through its existing preferred equity securities and capital structure.Bitcoin is at its 200-week moving average tonight of ~$68k.Historically, that’s been one of the best times to increase risk exposure to Bitcoin. It’s also when the way a Bitcoin company is built matters most.Investors in Strive know our amplification comes only from preferred equity, and that we keep large cash reserves. They also understand we have no encumbered Bitcoin and are uniquely positioned to withstand dips. What I think is less understood is the value of having two deeply liquid preferred equities already trading, and how that lets us turn dips into a higher amplification ratio when Bitcoin recovers. Said another way, these dips can make us even more valuable because of the engines and structure we have in place.Think about the three ways a Bitcoin company with amplification could go through a drawdown:1. Bad debt terms. A drawdown can force you to sell Bitcoin at the worst possible time. You don’t just round-trip when Bitcoin recovers. You permanently impair shareholder value.2. No engine. Bitcoin falls, your stock falls, Bitcoin recovers, and you end up roughly where you started.3. Liquid preferred equity with real demand already in the market. You can issue more preferred while Bitcoin is cheap, and come out the other side with a higher amplification ratio than you went in with.That third path is what Strive has done over the last year.Last Dec 31, Bitcoin was ~$87.5K and our amplification ratio was 30%. By Sep 30, Bitcoin was back near that level at ~$83.6K. Our amplification was 55%.Similar Bitcoin price, but with almost double the amplification.Even as Bitcoin rose 43% off the June low, which on its own should have cut our amplification from 67% to ~47%, we held at 55%. After launching SATS and with tonight’s dip, our amplification ratio is now over 70%. Year to date, ASST is up ~51% while Bitcoin is down ~19%.I believe this performance is primarily due to the structure we’ve very intentionally built with no debt and no pledged Bitcoin. That means no margin calls or debt maturities, and it lets us think long term and act opportunistically when Bitcoin dips.I don’t think the market properly values this yet, and additionally rarely uses discounted forward-return modeling when assessing what a Bitcoin treasury company is worth. On a forward view of total returns under reasonable Bitcoin bull scenarios, I believe our common equity is undervalued, even though most mNAV calculations would show over 1x.There is a lot more to discuss on this, but it’s why we removed mNAV calculations from our dashboard over the past week. mNAV captures a single moment in time and treats our operating company as if it were just a passive fund.The discount we see in our equity is why we haven’t issued common equity over the past couple of weeks. We had some excess cash above our 18-month dividend reserve, and at these levels we’d view common issuance as dilutive, even with an mNAV over 1x, and ideally minimized unless we viewed it as necessary to invest in the long term success of our Digital Credit business.Bitcoin dips and down years are rough for many investors, especially if you’re not used to Bitcoin’s volatility. As long-time Bitcoiners, we’ve always understood it. We built Strive on purpose not just to withstand that volatility, but to add value for our common shareholders through it.We remain very constructive on Bitcoin risk going into 2027 and view these dips not only as an opportunity but as a blessing. We’ve used them to create additional value for our shareholders several times over the past year. It’s time to do it again.$ASST $SATA $SATS— Matt Cole (@ColeMacro) November 13, 2026Amplification Ratio Rises Despite Bitcoin Price MovementsStrive has pointed to its historical figures to explain how its strategy has worked over the past year. On December 31, Bitcoin was trading at approximately $87,500, while the company’s amplification ratio stood at 30%.By September 30, Bitcoin had returned close to that price level, trading at around $83,600. However, Strive’s amplification ratio had increased to 55%. This meant the company had achieved a significantly higher level of amplification despite Bitcoin trading at a broadly similar price.The company also highlighted Bitcoin’s 43% recovery from its June low. Based on that increase alone, Strive estimated that its amplification ratio should have fallen from 67% to approximately 47%. Instead, it maintained the ratio at 55%.Following the launch of SATS and Bitcoin’s latest decline, Strive says its amplification ratio has moved above 70%. The company also reported that ASST shares have gained approximately 51% year to date, while Bitcoin has declined around 19% over the same period.These figures form the basis of Strive’s argument that its capital structure has helped it expand amplification even during periods of significant movement in Bitcoin’s market price.No Debt or Pledged Bitcoin Remains Central to Its StrategyStrive attributes much of its ability to manage market volatility to its decision to avoid debt and keep its Bitcoin holdings free from pledges. The company says this arrangement removes the pressure associated with margin calls and debt maturities, allowing management to take a longer-term approach. It also highlighted the importance of maintaining substantial cash reserves. Strive says it holds an 18-month dividend reserve and has additional cash beyond that requirement.Despite having excess cash, the company has not issued common equity over the past couple of weeks. Management believes that issuing common shares at current market levels could dilute existing shareholders, even when the company’s market net asset value, or mNAV, is above 1x.Strive considers common equity issuance appropriate only when it supports long-term business objectives, including the development of its Digital Credit business. This reflects its view that raising capital should not automatically take priority over protecting the interests of existing common shareholders.The company has also removed mNAV calculations from its dashboard over the past week. It argues that mNAV provides only a snapshot of the company’s position at a particular moment and does not fully account for the operating business or its potential future returns under different Bitcoin market conditions.Strive believes discounted forward-return modelling provides a more useful way to assess its common equity value. Based on what it describes as reasonable bullish Bitcoin scenarios, the company considers its common shares undervalued, despite conventional mNAV calculations often showing a value above 1x.Its broader strategy is based on treating Bitcoin downturns as opportunities to strengthen its treasury position rather than periods that require a defensive retreat. Strive says its preferred equity markets, cash reserves and debt-free Bitcoin holdings are intended to support that approach as it looks towards 2027.