Strive, a publicly traded Bitcoin treasury and asset management company, has arranged a $500 million “at-the-market” stock offering to acquire additional Bitcoin. The company plans to issue a variable-rate Series A perpetual preferred stock (SATA), allowing shares to be issued at prevailing market prices, providing flexibility in capital raising. SATA stock offers a 12% dividend with an effective yield close to 13% and is based on Strive’s STRC perpetual preferred equity model, which has historically supported its Bitcoin reserves. Currently, SATA is priced around $91, below its $100 par value. Strive stated that proceeds from the offering may be used for Bitcoin purchases, acquisition of income-generating assets, working capital support, common stock repurchases, or acquisitions, though it did not specify the exact allocation for Bitcoin purchases. The company holds approximately 7,525 Bitcoins valued at about $695 million, making it the 14th largest publicly traded Bitcoin holder globally. Earlier this year, Strive strengthened its Bitcoin-focused treasury strategy through a reverse merger. Co-founded by businessman and political figure Vivek Ramaswamy, who launched his first exchange-traded fund (ETF) in August 2022, Strive’s asset management portfolio now exceeds $2 billion in value. Recently, the company agreed to acquire Semler Scientific, further increasing its Bitcoin reserves. Additionally, Strive criticized MSCI, the index provider, for proposals to exclude Bitcoin treasury companies from major equity indices, citing potential negative impacts on investor choice and market investment flows.
Source: bitcoinmagazine
