Strive CEO: The amplification rate determines the total return of the Bitcoin treasury company, aiming to increase it to over 60% within the year
Matt Cole, CEO of Bitcoin Treasury Company Strive, stated that in the Bitcoin treasury strategy, "leverage" is the most important factor driving total returns. His model shows that over 99% of the variation in total returns is determined by leverage, while the impact of capital costs is much lower than the market generally perceives.
Cole stated that Strive's goal is to outperform Bitcoin by maximizing total returns for common stock shareholders, with a benchmark scenario expecting Bitcoin to have an annualized compound growth rate of about 50% by 2030. Cole mentioned that he hopes to increase Strive's leverage to over 60% later this year, but achieving this goal will be more challenging if warrants are exercised or Bitcoin rises further in the coming weeks.