Strive Raises $630 Million With 15% Preferred Stock

Strive is paying a high price for capital to expand its bitcoin strategy. The company priced seven million shares of 15% Series A perpetual preferred stock, called SATS, at $90 each. That raises about $630 million before fees and expenses, up from the five million shares initially proposed.

The preferred stock has a $100 stated amount and an annual dividend of $15 per share. At the $90 offering price, that implies a 16.7% stated yield if dividends are declared and paid in full. The payments require board approval and legally available funds, and unpaid amounts accumulate. SATS ranks behind Strive's SATA preferred stock but ahead of the common shares.

Strive plans to reserve $157.5 million in cash or qualifying securities for the first 18 months of dividends. The figure reconciles directly: seven million shares multiplied by $15 a year and 1.5 years equals $157.5 million. The reserve improves near-term payment visibility, but it is funded from the same capital raise and does not remove long-term dependence on asset performance and future financing.

The remaining proceeds may fund bitcoin purchases, investments, acquisitions, working capital, capital spending and repurchases. Strive separately disclosed that it bought 2,822 bitcoin for about $235 million on October 12 and 13 at an average cost near $83,266 including fees. That lifted holdings to 35,595 bitcoin. It also expected about $369.2 million of gross proceeds from warrant exercises tied to 13.7 million common shares.

The financing gives Strive more liquidity without issuing traditional debt, but perpetual preferred stock still creates a senior cash claim ahead of common shareholders. A 16.7% offering yield signals the return investors demanded for that risk.

For ASST holders, the central trade-off is clear. More capital can increase bitcoin exposure, while the preferred dividend and potential common-share issuance raise the amount the underlying assets must earn before value reaches the common stock. The October 20 settlement and subsequent use of proceeds will show how quickly Strive converts expensive capital into assets.