Strive’s 74% Rebound Raises Questions About Book Value

Strive shares rose 74.1% year to date through the publication of a Simply Wall St analysis, putting attention on whether the stock’s price is supported by its book value. At Thursday’s close, the shares were $30.11, up 2.38% from the previous close.

Simply Wall St reported that Strive traded at a price-to-book ratio of 4.0, compared with about 2.6 for the medical equipment industry. The measure compares a company’s market value with the equity recorded on its balance sheet.

The analysis said Strive’s active Bitcoin purchases are changing the mix of assets on its balance sheet and may lead investors to value the company differently. It also noted a peer average of about 7.9, while describing Strive’s valuation as expensive against the industry and its peers.

The article said the share price’s next move may depend on whether the recent rise is consistent with the value suggested by the company’s balance sheet. It also pointed to risks beyond the headline valuation and Bitcoin exposure, but did not detail them.