Strive Upsizes SATS Preferred Offering to $630M at Discount

Bitcoin treasury business Strive, Inc. (ASST) priced an expanded offering of its SATS preferred shares late Thursday, raising the deal size to 7 million shares at $90 each. The offering, set at a 10% discount to the shares' $100 face value, represents a 40% increase over the original plan and is expected to generate $630 million in gross proceeds. The news came after Strive stock closed Thursday up nearly 4% at $25.65, before edging 0.4% lower in overnight trading.

Strive intends to use the capital to purchase additional bitcoin, fund working capital, pursue complementary acquisitions, and potentially buy back common or preferred equity. The aggressive capital raising strategy highlights the company's commitment to building its cryptocurrency treasury, which recently reached 35,595 bitcoin following a $235 million purchase earlier in the week. However, the high 16.67% yield on the preferred stock has drawn criticism from analysts who warn that heavy dividend obligations could erode protection for common shareholders if bitcoin prices drop.

Investors will monitor the official settlement of the offering scheduled for Oct. 20, as well as the initial dividend payment set for Nov. 9, which requires board approval. Chief Executive Officer Matt Cole defended the firm's structure, noting that $157.5 million in cash and securities has been set aside to cover the first 18 months of dividend obligations while management focuses on long-term performance.