Strive CEO says amplification ratio is key to BTC treasury returns, targets 60% this year

Matt Cole, CEO of Strive (ASST), said the most important variable determining the overall returns of a BTC treasury strategy is the amplification ratio. In a post on X, Cole said an analysis of the company’s internal model showed the amplification ratio explained more than 99% of changes in total returns, while the effect of capital costs was far more limited than the market assumes. Cole said Strive aims to deliver higher returns for common shareholders than holding BTC directly and plans to raise the amplification ratio to more than 60% by year-end. Cole added that doing so would require large-scale fundraising capacity, sufficient liquidity, and sustained investor confidence, while higher BTC prices could raise the amount of capital needed to reach the target and make it harder to achieve. The amplification ratio measures how much preferred stock and debt a company uses relative to the value of its BTC holdings.