Strive, Inc. closed a roughly $630 million preferred share sale on Oct. 20, but its estimated proceeds after costs fall short of the amount needed to buy 7,500 Bitcoin (BTC) at its recent average purchase price.
Strive’s final prospectus estimates $608.15 million in net proceeds after underwriting discounts and offering expenses. At the approximately $82,803 per BTC that Strive reported paying for purchases from Oct. 12-16, including fees and expenses, that amount would cover about 7,345 BTC if devoted entirely to Bitcoin.
The sale’s gross proceeds exceed the roughly $621 million that 7,500 BTC would cost at that historical average. Gross proceeds, however, are not the amount Strive expects to have available after the sale’s costs. The comparison is a calculation based on past purchases; Strive has not projected how many coins it will buy with the new funds.
The company sold seven million shares of its 15.00% Series A Perpetual SATS Preferred Stock at $90 each. Its prospectus lists Bitcoin purchases alongside working capital, income-generating assets, capital spending, share repurchases and acquisitions as possible uses of the net proceeds. Management retains discretion over that spending, and Strive has not specified a Bitcoin allocation.
In an Oct. 19 filing, Strive reported holding 36,818 BTC as of Oct. 16, before the offering closed. The closing announcement did not disclose a Bitcoin purchase funded by the sale. Any amount ultimately acquired would depend on both Strive’s allocation decision and the price it pays.
The preferred shares carry a cumulative annual dividend rate of 15% on a $100 stated amount per share, rather than their $90 sale price. That gives holders a dividend claim while placing the corresponding obligation on Strive. Regular payments are scheduled to begin Nov. 9 if the board declares them and legally available funds can be used.
