CoinDesk
Strive plans to raise $500 million by selling 5 million shares of its new perpetual preferred stock, SATS, at $100 apiece. The company says it will use the proceeds to buy more bitcoin. SATS will pay a fixed 15% dividend, distributed daily, and Strive intends to reserve enough cash at closing to cover the first 18 months of payments.
Why it matters
SATS will rank below Strive's existing perpetual preferred stock, SATA, which pays a variable dividend rate currently at 13%. The proposed offering gives investors a fixed-yield security tied to a company expanding its bitcoin treasury, while the dividend reserve provides a defined near-term funding buffer.
Strive reported buying 3,311 bitcoin last week, bringing its holdings to 32,773, worth about $2.7 billion. Three months earlier, its holdings were below 20,000 bitcoin, reflecting a sharp expansion in its treasury.
Market impact
If completed as planned, the $500 million raise would give Strive substantial capital for additional bitcoin purchases. The offering also adds another preferred-share structure among bitcoin treasury companies, with SATS' fixed 15% yield and junior position distinguishing it from SATA's variable-rate shares.
Investors will be watching the offering's completion, the use of proceeds and how Strive funds SATS dividends beyond the initial 18-month reserve.
Frequently asked questions
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How much does Strive aim to raise through the SATS offering?
Strive aims to raise $500 million by selling 5 million SATS shares at $100 each.
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What dividend will SATS pay?
SATS will pay a fixed 15% dividend daily. Strive intends to reserve enough cash at closing for the first 18 months of payments.
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How does SATS rank relative to Strive's SATA shares?
SATS will rank junior to Strive's existing perpetual preferred stock, SATA, which currently pays a variable 13% rate.
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How much bitcoin does Strive hold?
Strive reported holdings of 32,773 bitcoin, worth about $2.7 billion, after buying 3,311 bitcoin last week.
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What does Strive plan to do with the SATS proceeds?
Strive plans to use the proceeds from the proposed offering to purchase additional bitcoin.
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