Strive raising $500 million to buy additional bitcoin with new preferred share class
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Strive (ASST) announced it is launching a new perpetual preferred stock called SATS, offering a 15% fixed dividend. The company plans to raise $500 million by selling 5 million shares at $100 each, with proceeds aimed at purchasing additional bitcoin, acquiring income-producing assets, or buying back stock. SATS shares will be junior to the existing perpetual preferred stock, SATA, which has a variable dividend currently at 13%.
Why it matters
The source does not explicitly explain why this development matters for markets, users, or the industry. However, the move indicates Strive's strategy to expand its bitcoin holdings through a sizable capital raise.
Key context
Strive differs from many bitcoin treasury companies by significantly increasing its bitcoin holdings recently, acquiring 3,311 bitcoins last week and now holding 32,773 bitcoins worth about $2.7 billion. This compares to holdings below 20,000 coins three months ago. The company will also set aside a dividend reserve to cover 18 months of SATS dividends.
Key numbers and entities
Strive (ticker: ASST) is issuing SATS preferred stock at $100 per share with a 15% fixed dividend, targeting a $500 million raise. Its current preferred stock, SATA, pays a variable dividend, now 13%. Strive holds 32,773 bitcoins, recently increased from under 20,000 coins, with the total bitcoin value around $2.7 billion.
What remains unclear
The source does not specify the timeline for the IPO closing or the exact details on how proceeds will be allocated among bitcoin purchases, income assets, or stock buybacks. It also does not address broader market or regulatory implications of this new share offering.