ASST

Strive, Inc. (ASST) - Q2 2026 10-Q Summary

Business Context and Reporting Period

This report covers the quarterly period ended June 30, 2026. Strive, Inc. operates as a structured finance company with a Bitcoin-focused treasury strategy. The reporting period reflects the "Successor" entity following the reverse acquisition of Asset Entities Inc. and the subsequent business combination with Semler Scientific, Inc. (completed January 16, 2026). The company operates through three segments: Asset Management, Medical Device, and Corporate & Other (Bitcoin operations).

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Growth: Total revenues increased 94.6% year-over-year for the quarter, driven primarily by the inclusion of Medical Device revenues ($1.39 million) from the Semler Scientific acquisition, which had no comparable revenue in the prior period.
• Operating Expenses: Total operating expenses surged 369.1% to $24.4 million. This was largely due to a 713.7% increase in employee compensation and benefits ($16.3 million), driven by stock-based compensation ($5.7 million) and integration costs from the Semler Scientific merger.
• Investment Losses: The company recorded a net unrealized loss on digital assets of $228.0 million for the quarter (and $523.8 million for the six months), reflecting the volatility of its Bitcoin holdings. No such losses were recorded in the prior year periods as the company did not hold digital assets then.
• Debt Extinguishment: The company retired all remaining Semler Convertible Notes and the Coinbase Loan during the quarter, resulting in a gain on extinguishment of debt of $0.03 million for the quarter (offsetting a larger loss in the six-month view).

Guidance, Outlook, and Risks

• Bitcoin Strategy: Management continues to deploy capital into Bitcoin, viewing it as a hurdle rate for capital deployment. As of June 30, 2026, the company held 19,864 Bitcoin. Subsequent to the period end (as of August 7, 2026), holdings increased to 20,167 Bitcoin.
• Capital Markets: The company maintains active At-The-Market (ATM) programs for both Class A common stock and Variable Rate Series A Perpetual Preferred Stock (SATA Stock). As of June 30, 2026, approximately $4.4 billion in aggregate capacity remained available across these programs.
• Dividend Policy: SATA Stock pays daily dividends. The regular dividend rate was 13.00% per annum as of June 30, 2026. Management intends to adjust rates to maintain the stock price within a $99-$101 range.
• Risks: Primary risks include significant volatility in Bitcoin market prices, which directly impacts net income, and the high cost of capital associated with preferred stock dividends. The company also faces standard litigation risks, including a shareholder lawsuit regarding the Semler Scientific merger.

Investor Verification Checklist

• Bitcoin Valuation: Verify the fair value of the 19,864 Bitcoin holdings ($1.16 billion) against current market prices, as unrealized losses on these assets are the primary driver of the reported net loss.
• Preferred Stock Dilution: Review the terms of the SATA Stock, specifically the variable dividend rate and the potential for compounded dividends if payments are deferred, as this impacts cash flow and common equity value.
• Medical Device Integration: Assess the standalone performance and integration progress of the acquired Semler Scientific medical device operations, which now contribute to revenue but also to increased operating expenses.
• Cash Burn vs. Liquidity: Confirm the sustainability of the operating cash burn ($39.4 million used in operating activities for the six months) against the $145.5 million cash balance and the $4.4 billion ATM capacity.
• Share Count: Note the 1:20 reverse stock split effective February 6, 2026, and verify that all share counts and per-share data in historical comparisons are adjusted accordingly.