Strive Seeks to Raise $500 Million Through 15% Preferred Stock to Buy More Bitcoin

Strive, a US corporate Bitcoin holder, is seeking to raise funds for additional Bitcoin purchases through a preferred stock offering with a fixed 15% annual dividend.

CoinDesk reported on October 13 that Strive announced the previous day that it plans to raise $500 million by issuing a new perpetual preferred stock, SATS. The offering will comprise 5 million shares at an expected public offering price of $100 each.

Strive said the proceeds could be used to buy more Bitcoin. The funds could also be used to acquire income-generating assets or repurchase the company's own shares. The offering is drawing attention because it gives the company another financing tool to expand its Bitcoin holdings.

The new SATS preferred shares will carry a fixed annual dividend rate of 15%. That differs from Strive's existing perpetual preferred stock, SATA, which currently carries a floating dividend rate of about 13%. SATS will rank junior to SATA in dividend payments and liquidation.

As with SATA, dividends on SATS will accrue daily. Once the offering is completed, Strive also plans to set aside a separate reserve equal to the first 18 months of dividend payments. The goal is to secure funds for dividend payments to investors in the new preferred shares.

Strive has recently been increasing its Bitcoin holdings at a rapid pace. The company bought 3,311 Bitcoin last week, bringing its total holdings to 32,773 Bitcoin. Those holdings are currently valued at about $2.7 billion.