Strive, a bitcoin treasury and asset management company, announced a $150 million follow-on offering of its Variable Rate Series A Perpetual Preferred Stock, known as SATA, on Wednesday. The proceeds will be used to repay debt from the company’s recent acquisition of Semler Scientific and to purchase additional bitcoin.
The offering comes as Strive expands its bitcoin holdings and manages debt obligations from its all-stock acquisition of Semler Scientific earlier this month. Strive currently holds the 11th-largest bitcoin stash among publicly traded companies.
According to the announcement, the funds raised will be allocated to repay or repurchase portions of debt issued by Semler Scientific. The proceeds will also be used to discharge borrowings that Semler obtained from Coinbase Credit and to acquire more bitcoin for Strive’s treasury.
SATA shares are valued at $100 for dividend-payment calculations and carry an annual payout rate initially set at 12.25%. The preferred stock pays cumulative monthly dividends, with unpaid dividends compounding monthly.
Strive is negotiating private exchanges with certain noteholders to swap convertible notes for SATA stock. These exchanges would be exempt from registration and would not generate cash proceeds, potentially reducing the size of the public offering.
The dividend rate on SATA can be adjusted downward within strict limits, with management targeting a long-term share-price range of $95 to $105. Unpaid dividends compound monthly at rates that can rise up to 20% annually.
SATA stock closed on Wednesday at $99.50, near the middle of management’s target range. Strive’s common shares rose 0.8% to 89 cents on the day.
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The offering represents Strive’s latest effort to strengthen its balance sheet while continuing to accumulate bitcoin. The company has been actively pursuing acquisitions and treasury management strategies to position itself in the growing digital asset management space.
Earlier in January, Strive announced an all-stock deal to acquire Semler Scientific. The company said it has secured shareholder approval for the acquisition, which would add Semler Scientific’s 5,048.1 Bitcoin to Strive’s existing treasury. Following the transaction, its total Bitcoin holdings will increase to 12,797.9 BTC.
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