Strive Aims for $630 Million Raise, Eyes Further Bitcoin Expansion
Asset management firm Strive has set the price for its expanded SATS series of preferred stock at $90 per share. The offering is designed to raise approximately $630 million in total proceeds.
Proceeds Allocation and Bitcoin Strategy
The company stated that a portion of the funds raised will be allocated to purchasing Bitcoin and related products, reinforcing its cryptocurrency investment strategy. The exact amount dedicated to Bitcoin acquisitions was not specified.
This move follows Strive's recent aggressive accumulation of Bitcoin. Just this month, the company executed two separate purchases totaling about 6,133 BTC, spending roughly $235 million. According to public treasury trackers, Strive's total Bitcoin holdings now stand at 35,595 BTC, placing it fourth among all public companies in terms of Bitcoin reserves.
Preferred Stock Structure and Dividend Details
The SATS preferred shares come with several defining features:
- Par Value & Price: Shares have a $100 par value but are offered to investors at $90.
- Dividend Rate: They carry a 15% annual cumulative dividend rate.
- Payment Schedule: Dividends are scheduled to be paid each business day starting November 9, subject to board approval.
- Asset Reservation: At closing, $22.50 per share will be reserved to cover approximately 18 months of dividend payments.
Any unpaid dividends will continue to accumulate. In Strive's capital structure, existing SATA preferred shares and outstanding debt rank senior to the new SATS shares.
Market Context and Strategic Outlook
Strive's decision to link a major capital raise directly to its Bitcoin accumulation plans underscores a long-term strategy treating Bitcoin as a core reserve asset. This approach of using traditional financing to bolster cryptocurrency positions is drawing increased attention in the corporate investment landscape.