Strive Closes $630M SATS Preferred IPO, Bitcoin Allocation Still Unclear
ASST has more than doubled off its 52-week low of $7.02.
Summary
Strive closed its upsized SATS preferred offering, selling 7 million shares at $90 each for $630M gross and roughly $608.15M net after fees, and the SATS preferred now lists on Nasdaq with a 15% fixed annual dividend. The 15% perpetual preferred pays $15 per share annually on its $100 stated amount, an annualized 16.67% yield on the IPO price, with daily dividend payments starting Nov. 9. Management still hasn't said how much of the proceeds goes to Bitcoin; the SEC filing lists general corporate purposes including BTC purchases, working capital, buybacks and acquisitions. If fully deployed at an illustrative $82,500 per BTC, the net proceeds would buy about 7,372 BTC, lifting holdings from 36,818 to roughly 44,190 BTC. The cash removes near-term financing risk, but the 15% dividend is a heavy fixed obligation and the lack of a stated BTC allocation leaves the treasury strategy ambiguous.
At the time of this announcement, ASST was trading at $26.75 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $7.02 to $36.20. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Cointelegraph.