Strive, Inc. closed a preferred-share sale with about $630 million in gross proceeds on Oct. 20, adding capital for potential Bitcoin (BTC) purchases and a 15% cumulative annual dividend claim.
Separately, Strive’s common shares, traded as ASST, rose $1.52, or 5.95%, to close at $27.06 on Oct. 20, according to ChartExchange market data.
Strive sold seven million shares of its 15.00% Series A Perpetual SATS Preferred Stock at $90 each. That was two million shares more than it initially planned to sell. The company also announced a Nasdaq listing for the preferred stock under the symbol SATS.
The $630 million figure is before underwriting discounts, commissions and other offering costs. Strive identified Bitcoin and related products as possible uses of the net proceeds, alongside working capital, income-generating assets, capital spending, repurchases of common or SATA preferred shares, and acquisitions. It assigned no specific amount to Bitcoin purchases.
The sale follows an earlier increase in Strive’s Bitcoin holdings. Strive held 36,818 BTC as of Oct. 16, after buying 4,045 BTC from Oct. 12 through Oct. 16, according to its Oct. 19 filing. Those purchases preceded the preferred sale’s close.
The dividend rate is calculated on each SATS share’s $100 stated amount, rather than its $90 sale price. SATS holders have priority over common shareholders for dividends and liquidation proceeds. SATA holders and creditors have priority over SATS holders. Strive Chairman and CEO Matt Cole said placing the new capital below SATA was intended to strengthen SATA’s credit profile.
Regular SATS dividend payment dates are scheduled for each business day beginning Nov. 9. Each payment requires a board declaration and funds that Strive can lawfully distribute.
