Strive prices preferred stock offering with expected proceeds of $630 million
Key Facts
Strive priced an initial public offering of SATS perpetual preferred stock with expected gross proceeds of $630 million, according to its pricing announcement. Stated uses of the funds include purchases of bitcoin and bitcoin-related products, alongside other corporate needs. Strive set the offering price at $90 per share for 7,000,000 shares. The company increased the offering by 2,000,000 shares from its initial plan to sell 5,000,000 shares. The estimated gross proceeds remain before underwriting discounts and commissions and offering expenses, according to the statement.
The final prospectus filed with the U.S. Securities and Exchange Commission estimated expected net proceeds of approximately $608,150,000 after discounts, commissions and estimated expenses. In a separate filing, the company set the aggregate stated amount of the shares offered at $700 million, a figure distinct from the offering's cash proceeds. Dividends on SATS shares accrue at an annual rate of 15.00%, according to the security's announced terms. That rate is calculated on a stated amount of $100 per share, while the offering price was set at the level announced in the pricing statement. SATS shares rank junior to SATA shares in the capital structure, according to the final prospectus.
Strive's announced uses of the offering proceeds span bitcoin-related purchases and funding for other activities and needs, according to the pricing statement. On purchases, the plan includes acquiring the cryptocurrency itself and related products, according to the uses specified by the company. The statement also includes "purchases of income-generating assets" among the stated purposes for deploying the funds it expects to raise from the offering. Strive also intends to use the proceeds to fund working capital and capital expenditures, alongside those purchases. The company listed potential repurchases of its common stock or SATA shares among possible uses of the funds, according to the same statement.
The offering comes as Strive's bitcoin holdings expanded to 36,818 coins, according to a holdings update filed with the U.S. regulator. Holdings stood at 32,773 coins at the start of the comparison period shown in the filing's table, before the increase recorded at its end. The addition during that period totaled 4,045 bitcoin, according to figures the company provided in its holdings update table. In the same filing, Strive announced that all traditional stock purchase warrants had been exercised or expired, with none remaining outstanding. Barclays and Cantor are joint book-running managers for the offering, according to the company's initial announcement of the proposed issuance.
On dividend funding, Strive intends to establish a reserve at the offering's closing to cover initial payments to SATS shareholders, according to the proposed offering announcement. The company set the reserve's target coverage at the first 18 months of dividends on this class of preferred stock. The reserve will be funded from cash and securities already held by the company, according to its announced dividend arrangements. After the reserve period ends, Strive expects to fund cash dividends primarily through "additional capital-raising transactions," according to the final prospectus. Financing activities identified in the prospectus for this purpose include at-the-market securities offerings among the sources of additional capital.
The underwriting agreement set the offering's settlement date at October 20, 2026, according to Strive's official filing with the U.S. regulator. The scheduled settlement remains subject to customary closing conditions set out in the offering agreement, according to that filing. Regular dividend payment dates for SATS shares begin on November 9, 2026, according to the final prospectus. Dividend payments are subject to declaration by the board of directors or an authorized committee, under the terms the company set out in the prospectus. The prospectus also requires legally available funds, alongside a declaration, for dividends to be paid to shareholders.