Strive Seeks $500 Million to Expand Bitcoin Holdings Through New Preferred Shares

Strive’s new SATS preferred shares will provide investors with a fixed annual dividend yield of 15% at par value. The shares will rank below the company’s existing SATA preferred stock, which pays a variable dividend rate currently set at 13%.

Bitcoin treasury firm Strive (ASST) announced Tuesday evening that it plans to introduce SATS, a perpetual preferred share class offering a fixed 15% dividend.

The company intends to issue 5 million shares priced at $100 each, targeting a total capital raise of $500 million. Proceeds may be used to purchase additional Bitcoin (BTC), acquire income-generating assets or repurchase the company’s own shares.

SATS will rank junior to Strive’s existing perpetual preferred stock, SATA, whose dividend rate currently stands at 13% and can vary over time.

As with SATA, dividends on SATS will be paid daily. Once the offering closes, Strive also plans to establish a dividend reserve sufficient to cover the first 18 months of SATS payments.

Unlike many Bitcoin treasury companies, including the considerably larger Strategy, Strive has recently expanded its Bitcoin holdings at a notable pace.

Last week, the company purchased another 3,311 BTC, increasing its total reserves to 32,773 Bitcoin, valued at approximately $2.7 billion at the cited price. Its holdings were below 20,000 BTC just three months ago.