Strive completes $630M SATS preferred stock offering with undefined Bitcoin investment strategy
With its net proceeds, the Bitcoin treasury firm has the capability to purchase roughly 7,372 BTC, which could push its total holdings beyond those of Metaplanet should it dedicate the entire sum to Bitcoin acquisition.
On Oct. 20, Strive—the Bitcoin treasury firm under the leadership of chairman and CEO Matt Cole—successfully completed its expanded initial public offering for SATS preferred stock, bringing in $630 million in gross proceeds, the company revealed in its official statement.
The organization has yet to disclose the specific allocation of proceeds that will be directed toward Bitcoin (BTC) acquisitions.
The offering consisted of 7 million shares priced at $90 per share. According to BitcoinTreasuries.net, the company projected net proceeds totaling $608.15 million following the deduction of underwriting discounts, commissions and associated expenses. In documentation submitted to the SEC, Strive indicated its intention to deploy the capital for general corporate purposes, encompassing Bitcoin acquisitions, working capital needs, income-generating asset purchases, capital expenditures, share buyback programs and potential acquisitions.
The SATS instrument features a 15% annual dividend calculated on its $100 stated amount, translating to $15 per share on an annual basis if distributed in full. The dividends accumulate over time and become payable upon declaration by Strive's board of directors. Based on the $90 IPO price point, the stated dividend corresponds to an annualized yield equivalent to 16.67% of the initial purchase price.
Using an illustrative Bitcoin valuation of $82,500, the estimated net proceeds of $608.15 million from Strive could facilitate the acquisition of approximately 7,372 BTC excluding transaction fees. Should the company allocate the full amount to BTC purchases, this would elevate Strive's current reported holdings from 36,818 BTC to approximately 44,190 BTC, positioning the company to potentially exceed Metaplanet's disclosed holdings of 44,000 BTC.
Payment of SATS dividends is set to commence on each business day starting Nov. 9, contingent upon board declaration. Should the first payment be declared in its entirety, it will encompass accumulated dividends retroactive to the Oct. 20 closing date.
Jeff Walton, serving as Strive's chief risk officer, emphasized that the company operates without debt or upcoming maturities and maintains concentration on a singular obligation: the distribution of dividends.