Strive has priced seven million shares of its new SATS preferred stock at $90 each, targeting $630 million in gross proceeds. The offering carries a $15 annual dividend per share, which implies a 16.67% cash yield at the offer price, with settlement scheduled for October 20.
The company plans to use the raised capital for Bitcoin acquisition, business support, and asset purchases. While the shares have a $100 liquidation preference, this figure represents a claim amount rather than a guaranteed market exit price or maturity value for investors.
Key facts
- Strive priced 7 million SATS shares at $90 per share on October 15
- The offering targets $630 million in gross proceeds before expenses
- Annual dividend is set at $15 per share, implying a 16.67% yield at the offer price
- Proceeds will fund Bitcoin acquisitions, business operations, and asset purchases
- Settlement for the transaction is scheduled for October 20
- Shares carry a $100 liquidation preference but are perpetual with no maturity date
Why it matters
The offering structure requires Strive to maintain sufficient liquidity to fund the $105 million in implied annual dividends, as the underlying Bitcoin assets do not generate cash returns on their own.