Strive, Inc. signed an agreement Monday that permits up to $1 billion in future sales of additional SATS preferred shares, creating another possible source of capital for the Bitcoin holder.
The agreement sets an upper limit without requiring Strive to sell any shares. The company has not specified when or how much it would sell. Seven agents may earn commissions capped at 2% of gross proceeds from each transaction, Strive said in its SEC filing.
Strive’s prospectus lists Bitcoin (BTC) purchases, acquisitions, working capital, income-generating assets and preferred-stock dividends among possible uses of the money. It also permits repurchases of Class A common stock or SATA preferred stock. The company has not assigned a specific amount to any of those purposes.
Each additional SATS share would accrue dividends at a 15% annual rate calculated on its $100 stated value. Cash payments require a declaration and legally available funds. Strive expects further capital raising to be the main source of cash for those payments. SATS ranks ahead of common stock but behind SATA preferred stock.
The arrangement follows Strive’s initial SATS offering, which closed Oct. 20. Strive sold seven million shares at $90 apiece, generating $630 million in gross proceeds, according to its SEC-filed closing announcement. In a separate Oct. 26 filing, the company reported holding 43,000 BTC as of Oct. 23 after buying 6,182 BTC from Oct. 17 through Oct. 23 at an average $82,732 per BTC, including fees and expenses.
A first SATS dividend of $0.8710 per share is scheduled for Nov. 9 for holders of record Nov. 6.
