Strive plans to IPO preferred shares SATS, aiming to raise 500 million USD

Bitcoin Treasury Company Strive (ASST) announced the launch of a new class of perpetual preferred stock, SATS, with a fixed dividend rate of 15%. The company plans to issue 5 million shares at a price of $100 per share, raising a total of $500 million.

The new shares will have a lower repayment priority than Strive's existing perpetual preferred stock, SATA, which has a floating dividend rate currently at 13%. Like SATA, SATS will pay dividends daily. After the issuance is completed, the company plans to set aside a dividend reserve equivalent to 18 months of SATS dividend payments. The proceeds will be used to purchase Bitcoin, acquire income-generating assets, or repurchase shares.

Strive has been continuously increasing its Bitcoin holdings recently. The company purchased 3,311 Bitcoins last week, bringing its total holdings to 32,773 Bitcoins, valued at approximately $2.7 billion at current prices, compared to less than 20,000 Bitcoins three months ago. Unlike most Bitcoin treasury companies, including larger peers like Strategy, Strive has been able to significantly expand its Bitcoin holdings in recent weeks.