Strive (ASST) is launching an initial public offering for a new perpetual preferred stock class called SATS, which carries a fixed 15% dividend yield. The company aims to sell 5 million shares at $100 each to raise $500 million, with proceeds designated for purchasing additional bitcoin, acquiring income-producing assets, or executing stock buybacks.
The SATS shares will rank junior to Strive’s existing SATA preferred stock, which currently offers a variable 13% rate. To support the new issuance, Strive plans to establish a cash reserve at closing sufficient to cover 18 months of dividend payments on the SATS shares, which will distribute dividends on a daily basis.
Key facts
- Strive is IPOing SATS perpetual preferred stock with a 15% fixed dividend yield.
- The offering targets a $500 million capital raise through the sale of 5 million shares at $100 per share.
- SATS shares are junior to the existing SATA preferred stock, which has a variable rate currently at 13%.
- Proceeds from the sale may be used to buy more bitcoin, acquire income-producing assets, or repurchase stock.
- The company intends to set aside cash equal to 18 months of SATS dividend payments at the closing of the IPO.
- SATS dividends will be paid on a daily basis, similar to the existing SATA structure.
Why it matters
The directly documented consequence of this event is that Strive intends to use the raised capital to purchase additional bitcoin, acquire income-producing assets, or buy back stock, while simultaneously committing to fund 18 months of dividends for the new share class.