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Strive raising $500 million to buy additional bitcoin with new preferred share class
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- DeepHorus
Strive (ASST) is seeking to raise $500 million through an initial public offering of a new perpetual preferred stock class, SATS. The bitcoin treasury company plans to sell 5 million shares at $100 each. Proceeds will be used to purchase additional bitcoin, expanding its existing treasury strategy.
SATS will carry a fixed 15% dividend yield at par. It will be junior to Strive's existing perpetual preferred stock, SATA, which pays a variable rate currently at 13%. Like SATA, SATS will pay dividends daily, according to the company.
At the closing of the offering, Strive intends to establish a dividend reserve. The reserve will equal the first 18 months of dividend payments on SATS. This prefunding is designed to support the new preferred stock's payout obligations.
The raise comes as Strive has been rapidly increasing its bitcoin holdings. Last week, the company acquired 3,311 bitcoin. That brought total holdings to 32,773 coins, currently worth about $2.7 billion. Three months ago, holdings were below 20,000 coins.
Strive's accumulation contrasts with most bitcoin treasury companies, including far larger peer Strategy. Those firms have recently struggled to significantly increase holdings. Strive's ability to expand its stack could make the SATS offering attractive to income-focused crypto investors.
The new preferred class sits below SATA in the capital structure, meaning SATA holders have priority. SATS investors receive a higher fixed rate, but they accept junior status. Daily dividends may appeal to investors seeking steady yield.
If completed, the $500 million raise would further scale Strive's bitcoin treasury. The company's total coins would rise if proceeds are deployed into bitcoin. The offering also tests demand for crypto-linked preferred equity amid changing market conditions.
