our debt, and (ii) the preferential rights of our preferred stockholders to dividends and our assets in a liquidation, and that all such
claims rank senior to those of our common equity, and Bitcoin Yield is not, and should not be understood as a financial
performance, valuation or liquidity measure. Specifically, Bitcoin Yield is not equivalent to “yield” in the traditional financial
context. It is not a measure of the return on investment the Company’s stockholders may have achieved historically or can achieve
in the future by purchasing stock of the Company, or a measure of income generated by the Company’s operations or its bitcoin
holdings, return on investment on its bitcoin holdings, or any other similar financial measure of the performance of its business or
assets.
The trading price of the Company’s Class A common stock is informed by numerous factors in addition to Company’s bitcoin
holdings and its actual or potential shares of Class A common stock outstanding, and as a result, the trading price of the
Company’s securities can deviate significantly from the market value of the Company’s bitcoin, and Bitcoin Yield is indicative or
predictive of the trading price of the Company’s securities.
Investors should rely on the financial statements and other disclosures contained in the Company’s SEC filings. In particular, the
Company has adopted Accounting Standards Update No. 2023-08, Intangibles-Goodwill and Other-Crypto Assets (Subtopic
350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), which requires that the Company measure its bitcoin
at fair value in its statement of financial position as of the end of a reported period, and recognize gains losses from changes in the
fair value in net income (loss) for the reported period. As a result, we may incur unrealized gain or loss on digital assets based on
changes in the market price of bitcoin during a period, which would not be reflected in Bitcoin Yield.
As noted above, these metrics are narrow in their purpose and are used by management to assist it in assessing whether the
Company is raising and deploying capital in a manner accretive to stockholders solely as it pertains to its bitcoin holdings.
In calculating this metric, the Company does not consider the source of capital used for the acquisition of its bitcoin. When the
Company purchases bitcoin using proceeds from offerings of redeemable preferred stock, such transactions have the effect of
increasing the Bitcoin Yield, while also increasing the Company’s senior claims of holders of instruments other than Class A
common stock with respect to dividends and to the Company’s assets, including its bitcoin, in a manner that is not reflected in this
metric.
If the Company elects to redeem or repurchase its non-convertible instruments or incurs indebtedness that subsequently matures,
the Company may be required to sell shares of its Class A common stock or bitcoin to generate sufficient cash proceeds to satisfy
those obligations, either of which would have the effect of decreasing Bitcoin Yield, and adjustments for such decreases are not
contemplated by the assumptions made in calculating this metric. Accordingly, this metric might overstate or understate the
accretive nature of the Company’s use of capital to buy bitcoin because not all bitcoin is purchased using proceeds of issuances of
Class A common stock, and not all proceeds from issuances of Class A common stock are used to purchase bitcoin.
In addition, we are required to pay dividends with respect to our perpetual preferred stock in perpetuity. The Company has
historically not paid any dividends on its shares of Class A common stock, and by presenting these metrics the Company makes
no suggestion that it intends to do so in the future. Ownership of the Company’s securities, including its Class A common stock
and preferred stock, does not represent an ownership interest in, or a redemption right with respect to, the bitcoin the Company
holds.
The Company’s ability to achieve positive Bitcoin Yield may depend on a variety of factors, including factors outside of its
control, such as the price of bitcoin, and the availability of debt and equity financing on favorable terms. Past performance is not
indicative of future results.
This metric is merely a supplement, not a substitute to the financial statements and other disclosures contained in the Company’s
SEC filings. It should be used only by sophisticated investors who understand its limited purpose and many limitations.
About Strive
Strive is a structured finance company focused on disciplined capital allocation and long term value creation. We have
strategically adopted bitcoin as our hurdle rate for capital deployment because of our fiduciary duty to maximize long-term value
for stockholders and compound purchasing power over time.
Strive Asset Management, LLC, a direct, wholly owned subsidiary of Strive and an SEC-registered investment adviser, manages
over $2.8 billion in assets. Learn more at strive.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 175 promulgated
thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 3b-6
promulgated thereunder, which statements involve inherent risks and uncertainties. Examples of forward-looking statements
include, but are not limited to, express or implied statements regarding the outlook and expectations of Strive and its subsidiaries,