Strive Launches $500M 15% Perpetual Preferred Offering to Fuel Bitcoin Buying
ASST has more than doubled off its 52-week low of $7.02.
Summary
Strive is raising $500 million through a new perpetual preferred stock, SATS, with a fixed 15% annual dividend. The offering consists of 5 million shares at $100 each. Proceeds are earmarked primarily for additional Bitcoin purchases, though the company may also use funds for income-generating assets or share buybacks. SATS ranks junior to the existing SATA preferred, which currently pays a floating ~13% dividend. Strive will set aside an 18-month dividend reserve upon completion. This follows the company's aggressive Bitcoin accumulation—3,311 BTC bought last week, bringing total holdings to 32,773 BTC worth about $2.7 billion. The offering adds another dilutive financing layer on top of the ATM programs already in use, but the fixed 15% coupon is a notable premium to SATA's floating rate.
At the time of this announcement, ASST was trading at $27.47 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $2.8B. 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 8 out of 10. Source: Bloomingbit.