Strive, a publicly listed bitcoin treasury firm, announced the issuance of a new perpetual preferred share class, SATS, to raise half a billion dollars. The capital raise is intended to fund further bitcoin acquisition, diversify into income-producing assets, or repurchase existing stock.
Details of the SATS offering
The SATS series will be offered at $100 per share, with the company targeting the sale of 5 million shares. Each share carries a fixed 15% dividend, payable on a daily basis. The dividend rate is higher than the variable 13% currently associated with Strive’s existing perpetual preferred series, SATA, which remains senior to SATS in the capital structure. Upon closing, Strive will allocate enough cash to cover the first 18 months of SATS dividend obligations, establishing a dedicated reserve for those payments.
Intended use of proceeds
Strive disclosed that the $500 million raised will be allocated across three primary avenues. First, the firm plans to purchase additional bitcoin, expanding its already sizable treasury. Second, it may acquire income-producing assets that can generate steady cash flow. Third, the company retains the option to buy back shares, potentially supporting its market price. The flexibility in deployment reflects Strive’s strategy to balance growth in its core cryptocurrency holdings with broader asset diversification.
Recent growth in bitcoin holdings
In the weeks preceding the offering, Strive significantly increased its bitcoin inventory. The firm added 3,311 bitcoin to its balance sheet, bringing total holdings to 32,773 coins, a portfolio now valued at approximately $2.7 billion. This marks a notable jump from three months earlier, when the company’s holdings were under 20,000 coins. The rapid accumulation positions Strive ahead of many peers, including larger competitors such as Strategy, which have not reported comparable short-term growth.
Market context and share structure
Strive’s market price closed at $27.60 on the Tuesday before the announcement. The introduction of SATS adds a junior layer to the company’s capital hierarchy, sitting below the existing SATA series. Both preferred share classes are perpetual and distribute dividends daily, but the fixed-rate SATS provides investors with a clear yield expectation, while SATA’s variable rate adjusts with market conditions.
Why it matters
The issuance of a high-yield, junior preferred share class underscores Strive’s confidence in its ability to generate cash flow from its expanding bitcoin treasury. By raising $500 million, the firm not only accelerates its accumulation of the world’s leading cryptocurrency but also diversifies its asset base, potentially enhancing resilience against market volatility. The move may set a precedent for other bitcoin-focused firms seeking capital through structured equity instruments, highlighting the evolving financial engineering around digital-asset holdings.
