Strive Launches $500 Million Preferred Stock Offering to Buy More Bitcoin

Strive raises $500 million through new SATS preferred stock

Bitcoin treasury company Strive, traded under the ticker ASST, announced a new perpetual preferred stock called SATS designed to raise $500 million for additional bitcoin purchases, income-producing asset acquisitions, or stock buybacks.

The offering targets 5 million shares priced at $100 each. SATS carries a fixed 15% dividend yield and will sit behind the company's existing preferred stock, SATA, which pays a variable rate currently set at 13%.

Key details from the offering

• 5 million shares at $100 each, totaling a $500 million capital raise.
• 15% fixed dividend on SATS, compared to SATA's current variable rate of 13%.
• Dividends on both SATS and SATA are paid daily.
• SATS ranks junior to SATA, meaning SATA holders get paid first.
• At closing, Strive will set aside a reserve equal to 18 months of SATS dividend payments.

Strive has been actively building its bitcoin holdings

Strive acquired 3,311 bitcoin last week, bringing its total holdings to 32,773 coins, currently valued at approximately $2.7 billion. Three months before that, the company held fewer than 20,000 coins. The source notes that unlike many other bitcoin treasury companies, including the much larger Strategy, Strive has recently been able to significantly increase its bitcoin position.

What this means for Strive shareholders

The new SATS share class gives investors a higher fixed dividend rate than SATA's current variable rate, though SATS holders are paid after SATA holders in the capital structure. The 18-month dividend reserve that Strive intends to establish at closing is meant to provide a buffer for dividend obligations on the new shares.

Sources

• CoinDesk — Strive raising $500 million to buy additional bitcoin with new preferred share class

Read also: Strive Buys 3,311 Bitcoin for $280 Million, Narrowing Gap With MARA