Strive Closes About $630 Million Offering After Raising Holdings to 36,818 Bitcoin
Key Facts
Strive announced on October 20, 2026, that it had closed an upsized offering of its SATS preferred shares, with estimated gross proceeds of about $630 million and potential uses including bitcoin purchases and working capital. The company said in its closing announcement filed with the U.S. Securities and Exchange Commission that the offering comprised 7,000,000 shares priced at $90 each. The proposed size when initially announced on October 13 was 5,000,000 shares, before the offering was expanded. The final prospectus estimated net proceeds to the company of about $608.15 million after underwriting discounts and commissions and offering expenses. In the closing announcement, Strive expected the shares to begin trading on the Nasdaq Global Market under the symbol SATS on or about October 20, 2026.
The closing announcement followed a treasury update disclosed by Strive on October 19, which showed its holdings had reached 36,818 bitcoin as of October 16. The update compared that balance with holdings of 32,773 bitcoin on October 9, an increase of 4,045 coins over the period. The average price of the bitcoin purchases covered by the update was about $82,803 per coin, including fees and expenses, according to the SEC filing. These balances preceded settlement of the SATS offering, as the company had not received its proceeds and no shares of this class were outstanding on the dates covered by the table. Cash and cash equivalents rose during the treasury update period to $317.5 million from $310.3 million, an increase of $7.2 million.
The expansion in bitcoin holdings was accompanied by an increase in the actual number of common shares, which combines Class A and Class B shares. The count stood at 124,064,126 shares on October 16, compared with 110,387,204 shares on October 9, according to the treasury update. The increase over the period was 13,676,922 shares. In a separate disclosure dated October 14, Strive said investors had exercised 273,493,909 traditional warrants to purchase 13,674,703 Class A common shares. The company estimated expected gross proceeds from those warrant exercises at about $369.2 million.
Potential uses of proceeds from the SATS offering include acquiring bitcoin and bitcoin-related products, according to the company's offering announcement. Strive also listed working capital among its stated purposes. The list also includes purchases of income-generating assets. The company did not specify how much of the net proceeds it would allocate to each use, saying in the prospectus: "We have not determined the specific amount." Management retains broad discretion to allocate the funds among these uses, according to the same prospectus.
Under the terms of the issue, SATS dividends accrue at an annual rate of 15.00% on a stated amount of $100 per share. The shares' liquidation preference also starts at $100 per share, subject to adjustment under the terms of the issue. SATA shares remain senior to them, according to the certificate of designations for the new class. The subscription terms prohibit the company from declaring or paying dividends on junior shares, or repurchasing those shares, while accrued SATS dividends remain unpaid, subject to customary exceptions. SATS holders have limited voting rights, covering certain amendments to governing documents and certain business combinations, and do not automatically receive the voting rights of common shareholders.
At the offering's closing, Strive increased its dividend reserve by an amount equivalent to the first 18 months of SATS payments, according to the closing disclosure. The company used existing cash and securities to deposit the equivalent of $22.50 per share into this reserve. However, the prospectus states that funds allocated for dividends are not held separately by a third party. The company said it expects to fund cash dividends "primarily through additional capital-raising activities," including at-the-market sales programs for its securities. The SATS dividend schedule begins on November 9, 2026, with payment dates falling on every business day, according to the pricing term sheet. Payment remains subject to declaration by the board and the availability of funds legally available for distribution.