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Strive (NASDAQ: ASST) has expanded its preferred stock offering to a USD 700 million stated value as the Bitcoin treasury company prepares to raise additional capital for potential BTC purchases.
The company announced on October 15 that it priced 7 million shares of its 15% Series A Perpetual SATS Preferred Stock at USD 90 each. The sale is expected to generate USD 630 million before fees, with closing scheduled for October 20, subject to customary conditions.
Strive initially planned to sell 5 million SATS preferred shares before increasing the offering by another 2 million. The expansion raised the total share count by 40%, bringing the offering's stated value to USD 700 million.
Each preferred share has a stated value of USD 100 but will sell for USD 90. Consequently, Strive expects USD 630 million in gross proceeds rather than USD 700 million in cash. The final amount will be lower after underwriting fees, commissions and other expenses.
Barclays and Cantor are serving as joint book-running managers, while Clear Street is acting as lead manager. The offering introduces a new class of preferred shares. Strive's existing common stock trades on Nasdaq under the ticker ASST.
Strive intends to use part of the proceeds to purchase Bitcoin and Bitcoin-related investment products. Other planned uses include working capital, income-generating assets and general business expenses.
The company may also repurchase Class A common shares or its existing SATA preferred stock. Additionally, it could finance acquisitions of businesses, assets or technologies that support its operations.
However, Strive has not specified how much of the proceeds will go toward Bitcoin purchases or when those transactions might occur.
The company has previously used its SATA preferred stock financing program to support Bitcoin accumulation. Unlike SATA, which carries a variable dividend rate, SATS offers a fixed annual rate.
Strive currently holds approximately 35,595 BTC following two recent purchases totaling 6,133 Bitcoin.
On October 13, the company reported purchasing 3,311 BTC at an average price of USD 84,500 per coin, including fees. The Bitcoin treasury expansion to 32,773 BTC followed purchases made between October 5 and 9.
A day later, Strive disclosed another 2,822 BTC purchase at an average price of USD 83,266. The transaction cost approximately USD 235 million and increased its holdings to 35,595 BTC.
Earlier, Strive expanded its treasury through its acquisition of Semler Scientific, which added thousands of Bitcoin to its reserves.
The new SATS preferred shares carry a cumulative annual dividend of 15% on their USD 100 stated value. This equals USD 15 per share annually, representing approximately 16.7% of the USD 90 offering price if paid in full.
However, dividend payments require board approval and legally available funds. Regular payment dates are scheduled to begin November 9, 2026, and occur each business day.
Strive also plans to increase its dividend reserve at closing by setting aside USD 22.50 per issued share. The reserve represents 18 months of dividend payments and will consist of existing cash and securities.
The shares initially carry a USD 100 liquidation preference, subject to adjustments under specified market conditions. Holders may also require Strive to repurchase their shares following certain corporate changes.
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