Strive, Inc. expects to settle a preferred share sale on Oct. 20 that would bring about $630 million in gross proceeds while adding cumulative dividend obligations to the Bitcoin (BTC) holder.
Strive priced 7 million SATS shares at $90 apiece in its preferred share offering. The shares carry a 15% annual dividend rate calculated on a $100 stated amount per share, rather than the sale price. Cash payments require a board declaration and legally available funds, Strive said in its filing.
The company listed Bitcoin purchases, working capital, income-generating assets, acquisitions, capital spending and share repurchases as possible uses of the net proceeds. It assigned no amount to Bitcoin or income-generating assets. The sale would provide funds for those possible uses while creating a cumulative dividend obligation to preferred shareholders.
In a video published Oct. 19 by Bitcoin Magazine, ParaFi Capital LP partner and portfolio manager Jeff Park discussed demand for preferred shares issued by companies holding Bitcoin. The conversation also covered using Bitcoin as collateral and how preferred securities fit alongside stocks and bonds.
Strategy Inc. reported in an Oct. 19 filing that it repurchased $193.1 million of STRC preferred shares during Oct. 12-18. It also used $45.5 million from its USD Reserve to pay preferred dividends. Strategy’s investor briefing describes STRC as preferred equity and says no assets secure its payments.
Park’s conversation also addressed Bitcoin’s performance alongside 10-year U.S. Treasury yields above 5%, the rollout of the GENIUS Act and possible sources of stablecoin demand. The Treasury put the 10-year yield at 5.15% on Oct. 19.
On tokenization, BNY said it completed an overnight financing transaction with Citadel Securities using a tokenized representation of a two-year U.S. Treasury note as collateral. BNY described it as the first use of tokenized assets on a major triparty repo platform.
Strive expects the sale to settle Oct. 20, subject to closing conditions. Its first scheduled dividend date is Nov. 9, if the board declares a payment.
