Strive Targets $500 Million Preferred Share Sale to Expand Bitcoin Treasury

Strive, a US-based Bitcoin treasury company, is moving to raise $500 million through a new perpetual preferred stock offering to accelerate its cryptocurrency accumulation strategy. The company announced the plan on Tuesday evening, unveiling a new share class called SATS that will carry a fixed 15% annual dividend.

The offering involves 5 million shares priced at $100 each. Proceeds from the sale will be directed toward purchasing additional bitcoin, acquiring income-producing assets, or funding stock buybacks, according to the company's announcement. The move gives Strive another financing tool to expand its Bitcoin holdings at a time when the firm has been rapidly scaling up its treasury position.

The new SATS preferred shares will rank junior to Strive's existing perpetual preferred stock, SATA, in terms of dividend priority and liquidation rights. SATA currently pays a variable rate dividend of approximately 13%. Unlike SATA's floating structure, SATS offers investors a fixed 15% yield, providing more predictable income. Both share classes distribute dividends on a daily basis.

To reassure prospective investors, Strive plans to establish a dedicated dividend reserve at the closing of the offering. The reserve will cover the first 18 months of dividend payments on SATS, ensuring that the company has sufficient cash set aside to meet its obligations to new shareholders.