Strive priced its expanded SATS preferred stock offering at $90 per share, targeting approximately $630 million in gross proceeds. The company plans to put part of the money into Bitcoin, though it has not said how much.
Strive priced its SATS preferred stock offering at $90 per share, targeting approximately $630 million in gross proceeds. The company is seeking fresh capital for further Bitcoin purchases and other corporate needs.
Strive lists Bitcoin buys among uses for the proceeds
According to the company's offering details, Strive will allocate a portion of the proceeds to acquire Bitcoin and other related products. It has not shared how much it will spend on those acquisitions.
The company may also use the funds for working capital, income-generating assets, business expenses and potential share repurchases. Under the offering terms, Strive can buy back its Class A common stock or existing SATA preferred shares.
SATS shares carry a 15% annual dividend
Under Strive's SEC filing, the new preferred shares carry a 15% annual cumulative dividend calculated on a stated value of $100 per share, although investors will pay $90 per share in the offering. Strive plans dividend payments each business day starting November 9, subject to board approval.
To support these payments, Strive plans to reserve assets worth $22.50 per share at closing, equivalent to 18 months of dividends. However, Strive's existing SATA preferred stock and outstanding debt will take priority over SATS shares in the company's capital structure.
Strive holds 35,595 BTC
The offering follows two recent purchases. Strive bought 3,311 Bitcoin, then added 2,822 more BTC worth $235 million, for two acquisitions totaling 6,133 Bitcoin within days.
According to BitcoinTreasuries.net, Strive ranks fourth among publicly traded Bitcoin treasury companies, holding 35,595 BTC. Fifth-ranked MARA Holdings holds 35,577 BTC, just 18 BTC behind. At press time, Bitcoin was trading at $81,609, down 0.68% over the past 24 hours.
Source: CoinGape
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