Strive (ASST), a Bitcoin treasury firm, has raised its preferred stock sale to 7 million shares of preferred stock with gross proceeds of around $630 million. On October 15, the company sold 15% Series A Perpetual SATS Preferred Stock at $90 per share. This is an increased offering of 2 million shares, over the original offering. The deal is expected to close Oct. 20 on the usual terms.
Strive plans to channel allotment of funds into several corporate needs such as augmenting Bitcoin buying with 35,595 BTC in treasury . The company will also take into account income-generating investments, business extension, working capital as well as other capital expenditures.
It is also considering repurchasing Class A common stock and/or its current SATA preferred stock. Strive may also engage in acquisitions of companies, assets or technologies that are complementary to its operations.
Strive announces upsized IPO of $SATS to $700M notional, priced at $90 per share.
We'll discuss the details in depth on the next @HurdleRatePod , which will be released when the IPO settles next Tuesday. pic.twitter.com/10P6R4voHi
The company is anticipating that it will receive approximately $630 million prior to underwriting fees, commissions and other offering costs. For context, the announced sale equals $700 million, but the figure in the headline is based on the gross proceeds at a higher valuation of the shares.
The money may be used to fund Strive’s purchase of Bitcoin and other Bitcoin-related products, as well as other corporate goals, said Strive.
Newly offered preferred shares of the SATS pay a 15% dividend per year based on a stated value of $100 per share, per the announcement . Dividend payments will be subject to the approval of the Strive board and availability of funds for legal distribution.
The first scheduled dividend date is Nov. 9, 2026. If the first payment is made on a full declaration, then it will be to the dividends that have been earned since the close of the offering.
Strive will also be increasing its dividend reserve when it closes. The company will pay $22.50 per share in the first 18 months and will set that aside as a fund to be paid out in the future. The actual cash and securities that the company has on its books will be used for reserve.
The preferred stock pays an initial liquidation preference of $100 per share, subject to adjustments based on the price of the preferred stock in the market and trading volume. It may also be necessary for the holders to redeem their shares after specified fundamental changes, on terms specified in the terms applicable to the securities.
Barclays and Cantor are joint book running managers and Clear Street is the lead manager.
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