Strive Chief Executive Officer Matt Cole has outlined an investment thesis urging investors to go short on the US dollar and long on Bitcoin, arguing that scarce assets will continue to outpace money supply growth and rising national debt.
Scarce Assets Outperform M2 Growth
According to data shared by Matt Cole, gold has recorded an annualized return of 9.0% since 1970, beating the 6.7% annualized growth of the US M2 money supply. The performance gap widened following the 2008 global financial crisis, with gold returning 9.5% annually against 6.3% for M2. Since 2020, gold gained 18.3% annually versus 6.5% for M2, while Bitcoin achieved an annualized return of 43.13% over the same period. Cole labeled Bitcoin as "digital gold" and projected it would outperform physical gold as the asset class matures.
Bitcoin Price Action and Treasury Expansion
Bitcoin was trading near $83,000, rising over 1% in 24 hours within an intraday range of $80,700 to $82,800. While Bitcoin experienced a 7-day loss of almost 2%, it registered a similar 30-day gain, remaining down nearly 23% year-over-year and about 34% below its all-time high of over $126,000, according to CoinGecko data. Market focus remains on the upcoming Federal Reserve meeting on October 27 and 28, alongside preliminary University of Michigan survey data placing one-year inflation expectations at 4.7%, up from 4.6%. Amid these macroeconomic pressures, Bitcoin price stability near key support continues to test market sentiment.
On the treasury side, Strive's aggressive Bitcoin acquisition strategy saw the firm acquire 3,311 BTC during the week ending October 13, bringing its balance to 32,773 BTC. On October 14, Strive bought another 2,822 BTC, increasing its total holdings to 35,595 BTC, valued at roughly $2.9 billion. Meanwhile, sentiment for treasury firms faces broader tests after MSCI finalized index rules last week that could remove Strategy from major indexes, coinciding with Strategy stock dropping from a Thursday peak above $151 to close below $137 on Friday.
Key Takeaways
- Gold returned 9.0% annually since 1970 and 18.3% since 2020, outstripping M2 money supply growth.
- Bitcoin generated a 43.13% annualized return since 2020, outpacing both gold and fiat currency expansion.
- Strive expanded its total balance sheet holdings to 35,595 BTC worth $2.9 billion following back-to-back purchases.
- Strategy stock fell from above $151 to below $137 following MSCI index rule updates.
Why It Matters
Matt Cole's framework underscores how institutional corporate treasuries view Bitcoin as a structural defense against ongoing fiat currency debasement. Rather than relying on traditional fiat cash flow metrics, Strive's strategy prioritizes maintaining a high "Amplification Ratio" to magnify Bitcoin gains without exposing the core business to financial distress. With U.S. one-year inflation expectations climbing to 4.7%, corporate balance sheets that hold scarce digital assets may set a precedent for long-term purchasing power preservation.
