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Strive, a bitcoin treasury company, has announced a new preferred share class, SATS, as part of a $500 million capital raise.
What Happened
Strive (ASST) is offering a new perpetual preferred stock, SATS, at $100 per share.
The company plans to sell 5 million shares, totaling $500 million.
Proceeds will be used to purchase additional bitcoin, acquire income-producing assets, or buy back stock.
Key Facts
- The SATS share class offers a fixed 15% dividend yield at par.
- It pays dividends daily, like Strive’s existing SATA share.
- SATS is junior to the company’s current perpetual preferred stock, SATA, which pays a variable rate (currently 13%).
- At closing, Strive will establish a dividend reserve for 18 months of SATS dividends.
- Strive’s total bitcoin holdings have increased to 32,773 coins, currently worth about $2.7 billion.
How It Works
The SATS shares are perpetual, meaning they have no maturity date and pay dividends regularly.
Dividends are paid daily, with a fixed 15% rate, making them predictable compared to the variable rate of SATA.
Because SATS is junior to SATA, holders of SATS are paid after SATA holders in the event of liquidation.
Why It Matters
Strive has significantly increased its bitcoin holdings in recent weeks, from below 20,000 coins to 32,773.
This move reflects a growing commitment to building a larger, more stable bitcoin treasury.
The new share class provides investors with a fixed return, which may appeal to those seeking predictable income from crypto assets.
Limitations and Open Questions
Unlike most bitcoin treasury firms, Strive has not relied on external financing to grow its holdings.
The fixed dividend structure may limit flexibility if bitcoin prices decline significantly.
There is no public information on how the company will manage risk or hedge against price volatility.
What to Watch Next
Investors should monitor Strive’s actual bitcoin holdings and dividend payments.
Market performance of the new shares will be closely watched as the offering closes.
Any future changes to the dividend structure or asset allocation will be significant for investors.
Source: Coindesk
For more on bitcoin treasury models and investor structures, see a recent case on bitcoin enforcement.
