Strive Closes $630M SATS Preferred IPO
Strive sold seven million SATS preferred shares at $90, raising $630 million gross. Bitcoin is among the permitted uses, with no specific allocation disclosed.
Key Notes
- Strive closed its SATS preferred offering with $630 million in gross proceeds.
- The 15% annual dividend is calculated on a $100 stated amount and requires declaration.
- Bitcoin is a permitted use of the proceeds but no specific allocation was disclosed.
Strive has closed its upsized SATS preferred-stock offering, selling seven million shares at $90 each for $630 million in gross proceeds. The financing gives the Bitcoin treasury company additional capital, but it has not disclosed how much will be used to buy BTC.
The company confirmed the closing on October 20 and said SATS was expected to begin trading on the Nasdaq Global Market on or around that date. The announcement concerns a new class of preferred shares, rather than Strive’s common stock, which already trades under ASST.
The completed deal is larger than the initial proposal CoinScreamer covered last week. Strive originally proposed five million shares, then increased the offering to seven million when it priced the transaction on October 15. At $90 each, the final sale produces $630 million before underwriting discounts, commissions and expenses.
A 15% dividend calculated on $100
SATS carries a fixed annual dividend rate of 15% on a $100 stated amount, equivalent to $15 per share over a full year if paid in full. The $100 figure is the basis for calculating dividends; investors paid $90 per share in the offering.
At that sale price, the full annual dividend would equal about 16.67% of the purchase price. That calculation is not a guaranteed total return: payments require declaration, and the preferred shares’ market price can change.
Dividends are cumulative, meaning unpaid amounts accumulate. Regular payment dates fall on each business day beginning November 9, subject to declaration by Strive’s board or an authorized committee and legally available funds. If declared in full, the first payment would include dividends accrued since the October 20 closing.
SATS is perpetual preferred equity, with no scheduled maturity. Chairman and CEO Matt Cole said the new class adds capital junior to Strive’s existing SATA preferred shares. SATA has a variable rate; SATS introduces a fixed-rate alternative at a lower position in the company’s payment hierarchy.
Bitcoin is one use of the proceeds
Strive’s pricing release identified general corporate purposes for the net proceeds. These include Bitcoin and Bitcoin-related products, working capital, income-generating assets, capital expenditures, securities repurchases and potential acquisitions.
The closing therefore does not establish a $630 million Bitcoin purchase or a commitment to spend the entire net amount on crypto. No specific BTC allocation or purchase timetable was disclosed in the closing announcement.
Strive’s latest separate treasury update put its holdings at 36,818 BTC as of October 16. Those previously reported purchases preceded settlement of the SATS offering and should not be attributed to proceeds from the newly completed financing.
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