Strive Turns to New Preferred Shares in $500 Million Bitcoin Funding Plan

Strive is planning to raise $500 million through a new perpetual preferred stock offering as the Bitcoin treasury company looks to expand its investments. Its SATS shares will carry a fixed annual dividend rate of 15% at par value, compared with the variable 13% rate currently offered by its existing SATA preferred stock.

The company, trading under the ticker ASST, announced the new preferred share class on Tuesday evening. It plans to issue 5 million shares priced at $100 each to generate the targeted $500 million.

Strive may use the proceeds to purchase more Bitcoin (BTC), invest in assets that generate income or repurchase its own shares.

SATS will rank below SATA in Strive’s capital structure. While SATA’s dividend rate can change and currently stands at 13%, SATS will offer a fixed 15% rate. Both securities will distribute dividends daily.

Strive also intends to create a dedicated reserve after the offering closes, with enough funds to cover the first 18 months of dividend payments for SATS holders.

The company has been increasing its Bitcoin reserves rapidly in recent months, outperforming the accumulation pace of many other corporate Bitcoin treasury firms, including the significantly larger Strategy.

Last week, Strive bought an additional 3,311 BTC, bringing its total holdings to 32,773 coins, valued at around $2.7 billion. Its Bitcoin stash was below 20,000 BTC just three months ago.