Strive, a company that buys bitcoin, is expanding its purchase strategy to a level that can double its bitcoin holdings about every 12 weeks. It is also pursuing financial soundness by pairing aggressive accumulation with liquidity management and financing structures.

Bitcoin Magazine reported on Sept. 22 that Jeff Walton (제프 월턴), Strive’s chief risk officer, explained in a recent interview the company’s bitcoin purchase strategy, financing methods and liquidity management plan.

Walton said Strive’s bitcoin buying pace is at a level that can double its holdings about every 12 weeks. He said Strive shares have shown strong momentum over the past month among Russell 2000 index constituents, and that the company’s balance sheet has exceeded $2.5 billion.

The main funding source for bitcoin purchases is an at-the-market, or ATM, programme using common and preferred stock. Walton said the company raises the funds needed for actual bitcoin accumulation through two types of ATM. It secures capital through stock issuance and then uses it for bitcoin purchases.

Strive is placing significant weight on liquidity management while maintaining a fast buying pace. Walton assessed that the around-the-clock bitcoin on-chain market may be easier to model than the stock market in some respects. He said the company cites a hurdle rate of 25 to 50 percent for bitcoin investment decisions, while also considering the cost of capital, dividends and the actual purchase price.

The interview also mentioned buying bitcoin at around $86,000. It means Strive determines its purchase pace by weighing funding costs, purchase prices and capital efficiency rather than simply increasing holdings.

Warrants were cited as a variable that could affect the company’s future financial structure. Strive holds $700 million in warrants set to mature on Oct. 13. Walton said that if the warrants are exercised, meaningful changes could occur in the company’s leverage structure and in financial products it may launch in the future. He did not disclose details of any follow-on products.

He also voiced caution about the market. Walton said the current financial market is not adequately pricing system-level credit risk. He singled out a "systemic credit event" as an element the market is underestimating, and said the company is watching liquidity and the possibility of a credit shock.

He also assessed that changes are emerging in bitcoin’s traditional four-year cycle. Walton said he sees the existing four-year cycle as being fundamentally shaken, and stressed that tests of trust and liquidity are important in the bitcoin market.

Strive’s strategy is not limited to simply increasing its bitcoin holdings. It is expanding the scale of bitcoin purchases while simultaneously considering fundraising through common and preferred-stock ATM programmes, the possibility of warrant exercises and liquidity management.

Whether Strive can actually increase its bitcoin holdings at the current pace, and how funding and its leverage structure change after the October warrant maturity, are expected to remain key variables.