Strive Seeks $150M in Preferred Stock to Reduce Debt, Acquire Bitcoin

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

The proceeds will be used to repay or repurchase portions of debt issued by Semler Scientific, which Strive acquired earlier this month in an all-stock deal. Additional funds will go toward settling Semler’s borrowings from Coinbase Credit and purchasing more bitcoin.

Strive, which holds the 11th-largest bitcoin reserve among publicly traded companies, is also negotiating private exchanges with select noteholders to swap some or all of their convertible notes for SATA shares. These 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, with a valuation of $100 for dividend calculations and an initial annual payout of 12.25%. The rate can adjust downward within set limits, and management targets a long-term share price between $95 and $105. Unpaid dividends compound monthly, with rates that can climb up to 20% annually.

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