Strive Raises Holdings to 36,818 Bitcoin, Closes Preferred Stock Offering
Key Facts
Strive increased its bitcoin holdings to 36,818 coins as it announced the closing of an upsized offering of SATS preferred shares, with estimated gross proceeds of about $630 million. A treasury update filed with the U.S. Securities and Exchange Commission showed holdings rose by 4,045 coins from the previous balance of 32,773 coins. The average cost of bitcoin purchases covered by the update was about $82,803 per coin, including fees and expenses associated with the purchases. The preferred stock offering comprised 7,000,000 shares priced at $90.00 each, according to the pricing term sheet filed with the SEC. The company's estimated proceeds are gross proceeds before underwriting discounts, commissions and offering expenses, with permitted uses including bitcoin purchases and business funding.
The final offering size was 2,000,000 shares larger than previously announced, according to Strive's pricing statement. Barclays and Cantor served as joint book-running managers for the transaction, which the company subsequently closed, according to the same statement. Alongside the preferred stock financing, Strive disclosed gross proceeds of approximately $369.2 million from warrant exercises in its treasury update. The company said in its investor presentation that the warrant exercises reduced the ratio amplifying common shares' bitcoin exposure and created room to increase it again through preferred stock financing. Permitted uses of the offering proceeds also include repurchases of the company's Class A common shares or SATA preferred shares, according to the SEC filing.
SATS adds another class to Strive's preferred stock structure, ranking junior to SATA shares and senior to ASST common shares, according to the company's terms. Chairman and Chief Executive Matt Cole described the issuance as strengthening SATA's credit profile by "adding a layer of capital junior to it." Cole's assessment links management's expected improvement in SATA's position to the new capital sitting below it in the order of priority. SATS shares themselves are perpetual preferred shares with fixed cumulative dividends, according to the terms page published by Strive. The pricing term sheet states that they are not convertible into other securities or exchangeable for other securities or property.
SATS dividends accrue at an annual rate of 15.00%, according to the offering's closing statement, on a stated amount of $100 per share. That amount is the basis specified in the terms for calculating dividends, while the pricing term sheet set the offering purchase price at $90.00 per share. The SATS terms page states that Strive's bitcoin holdings are not pledged as collateral for the shares, although the company holds the cryptocurrency in its treasury. The company also said in its investor presentation that "SATS shares will not have a target trading price range." Under the published terms, holders of this class rank above the company's common shareholders but below SATA holders.
Alongside the expansion in bitcoin holdings, the treasury update showed an increase in Strive's cash and cash equivalents over the period covered by the disclosure. The updated balance was $317,500 thousand, compared with $310,300 thousand at the start of the period, according to the table filed with the SEC. Cash and cash equivalents thus increased by $7,200 thousand during the update period, alongside the increase in cryptocurrency holdings. The company also held 505,000 shares of Strategy's STRC preferred stock, according to the same disclosure of treasury components. In its asset management business, Strive said in the offering's closing statement that its subsidiary, Strive Asset Management, manages more than $2.8 billion in assets.
At the offering's close, Strive confirmed that it had increased its dividend reserve and deposited the equivalent of $22.50 for each SATS share, according to the closing disclosure filed with the SEC. The company used existing cash and securities to establish the reserve, which covers the first 18 months of dividend payments calculated at the offering. According to the same disclosure, declared regular dividends to holders of these shares are payable exclusively in cash under the terms the company set for the new class. Regular dividend payment dates begin on November 9, 2026, according to the pricing term sheet setting out the start of the payment schedule. Dividend payments remain subject to declaration by the board of directors, a condition the company included in its payment arrangements for SATS holders.