Strive Plans $150 Million Preferred Stock Offering to Pay Down Debt and Purchase Bitcoin

Strive (ASST), a bitcoin treasury and asset management firm, announced plans for a $150 million follow-on offering of its Variable Rate Series A Perpetual Preferred Stock, SATA (SATA).

Proceeds from the sale will be used to repay or repurchase portions of debt issued by Semler Scientific, which Strive acquired earlier this month in an all-stock transaction. The funds will also help discharge Semler’s borrowings from Coinbase Credit and support additional bitcoin purchases.

Strive, which holds the 11th-largest bitcoin reserve among publicly traded companies, is in discussions with certain noteholders for private exchanges to swap some or all of their convertible notes for SATA shares. Any such exchanges would be exempt from registration, would not generate cash proceeds, and could reduce the size of the public offering.

SATA pays cumulative monthly dividends and is valued at $100 for dividend calculations, with an initial annual payout of 12.25%. The dividend rate can be adjusted downward within defined limits, while management targets a long-term share price range of $95 to $105. Unpaid dividends compound monthly, with rates potentially rising to as much as 20% annually.

On Wednesday, SATA stock closed at $99.50, while Strive’s common shares rose 0.8% to $0.89.