Strive raising $500 million to buy additional bitcoin with new preferred share class
- Strive (ASST) is IPOing a new perpetual preferred stock, SATS, with a 15% fixed dividend.
- The new share class will sit junior to the company’s existing perpetual preferred stock, SATA.
- At closing of the IPO, Strive will set aside enough cash to fund 18 months of dividends on SATS.
Bitcoin treasury company Strive ASST$27.60·Market Closed on Tuesday evening announced a new perpetual preferred stock, SATS, with a 15% fixed dividend.
The company is aiming to sell 5 million shares at $100 per share, for a capital raise of $500 million, with proceeds to be used to purchase additional bitcoin BTC$83,498.63, acquire income-producing assets, or buy back stock.
The new share class will sit junior to Strive’s current perpetual preferred, SATA, which has a variable rate (currently 13%).
Like SATA, SATS will pay dividends on a daily basis.
At closing of the offering, the company intends to establish a dividend reserve equal to the first 18 months of dividend payments on SATS.
Unlike most bitcoin treasury companies, including far larger peer Strategy, Strive has in recent weeks been able to significantly increase its bitcoin holdings.
The company last week acquired 3,311 bitcoin, bringing total holdings to 32,773 coins, currently worth about $2.7 billiion. Three months ago, holdings were below 20,000 coins.