Strive, Inc. (Nasdaq: ASST) raised approximately $630 million through the sale of a newly issued preferred stock that pays a 15% yield, with the company stating that part of the proceeds will fund bitcoin purchases as it pursues its goal of becoming the second-largest corporate holder of the asset.

Deal Terms and Pricing

In a statement filed with the SEC, Strive said it sold 7 million shares of its 15.00% Series A Perpetual SATS Preferred Stock at $90 per share, generating gross proceeds of about $630 million. The company initially planned to offer 5 million shares but upsized the deal, lifting the total face value to $700 million. After a $3-per-share fee for the banks and other costs, Strive expects to retain $609 million.

SATS was expected to begin trading on the Nasdaq Global Market on or around Tuesday. Each share carries a stated value of $100, meaning the 15% rate pays $15 per year. Because buyers paid $90, the effective yield is 16.7%, exceeding the yields on every bitcoin-backed preferred stock issued by Strategy (Nasdaq: MSTR). According to an October 15 filing, Strategy's STRC pays 12%, while its STRF, STRK and STRD pay 10%, 8% and 10%, respectively. The spread between the 15% coupon and the higher effective yield is a function of pricing: with $100 stated shares sold at a $10 discount, the fixed $15 annual payment is earned on a $90 outlay. The deal also fits a pattern already visible in the sector, where Strategy has issued four series of bitcoin-backed preferred stock and Strive now lists a second series of its own alongside SATA.

SATS is a cumulative perpetual preferred stock: any missed payments accrue and remain owed, and the shares have no maturity date. Once Strive's board declares dividends, they are paid every business day, starting November 9, with the first payment covering everything earned since the sale closed.

To support those payments, Strive will add $22.50 per share to its dividend reserve, an amount equivalent to the first 18 months of dividends and funded from cash and securities the company already holds. Across 7 million shares, the added reserve totals about $157.5 million — in effect, pre-funding the first year and a half of distributions from resources already on the balance sheet.

Chief Risk Officer Jeff Walton said holders of SATS and SATA can monitor the bitcoin on Strive's balance sheet in real time, with pricing updated throughout the day rather than four times a year. The company has also stated that it has no debt and no loans coming due. SATS ranks below SATA, Strive's existing preferred stock with a variable rate. Chief Investment Officer Ben Werkman described SATA as built for stable prices, while SATS was built for stable income.

Barclays (NYSE: BCS) and Cantor ran the books for the sale. Clear Street served as lead manager, with B. Riley (Nasdaq: RILY), H.C. Wainwright, Maxim and StoneX (Nasdaq: SNEX) as co-managers.

Climbing the Corporate Bitcoin Rankings

As of October 16, Strive held 36,818 bitcoin after purchasing 1,223 coins for about $100 million between October 14 and 16, according to an 8-K filing. That tally keeps Strive in fourth place among corporate holders. Strategy (Nasdaq: MSTR) leads with 848,517 bitcoin, followed by Metaplanet (TSE: 3350) with 44,000 and Twenty One (NYSE: XXI) with 43,514. Strive sits just ahead of MARA Holdings (Nasdaq: MARA), which holds 35,577. The distance to second place is short compared with the race for first: Twenty One's total stands 6,696 coins above Strive's and Metaplanet's 7,182 above it, compared with Strategy's lead of 811,699.

Chairman and CEO Matt Cole has said he wants Strive to take the No. 2 spot by the end of 2026, an objective the company has pursued through weeks of large purchases, some of which at times outpaced Strategy. Strive would reportedly need to buy about 700 bitcoin per week to pass Metaplanet, and shifts in the standings would surface first in the company's 8-K filings, the channel it has used to disclose purchases to date.

Cole called the stock sale a key step in the company's plan to maximize long-term returns for its common stock investors. Strive said the proceeds will go toward general business purposes, including purchases of bitcoin and bitcoin-related products, working capital, income-producing assets, capital spending, and buybacks of its Class A stock or SATA shares.

The company has not said how much of the $630 million will be converted into bitcoin, but estimates show that at a price near $82,000, the full amount could buy around 7,700 bitcoin before fees — slightly more than the current gap to second place.

Strive ended October 16 with $317.5 million in cash — a balance the roughly $609 million in expected net proceeds is nearly twice the size of. Its advisory arm, Strive Asset Management, is registered with the SEC and oversees more than $2.8 billion.