Strive Closes $630 Million Upsized SATS Preferred Stock IPO, Bitcoin Allocation Undisclosed
Key Takeaways
- •Strive sold 7 million SATS shares at $90 each in the completed offering.
- •The company reported estimated net proceeds of $608.15 million after underwriting costs and expenses.
- •Strive has not disclosed the portion of the proceeds it will use to purchase Bitcoin.
- •SATS carry a cumulative 15% annual dividend based on a $100 stated value, with payments scheduled to begin Nov. 9 if declared.
- •At an assumed Bitcoin price of $82,500, allocating all net proceeds to BTC could raise Strive’s holdings to approximately 44,190 coins.
Strive, the Bitcoin treasury company led by Chairman and CEO Matt Cole, closed its upsized initial public offering of SATS preferred stock on Oct. 20, raising $630 million in gross proceeds, according to the company's announcement. An upsized offering is one whose final size exceeds the terms the issuer originally planned, meaning Strive raised more gross capital than its initial target.
The company has not specified how much of the proceeds will be used to buy Bitcoin (BTC). That allocation decision is the immediate variable to watch, since it will set the pace at which Strive's reported holdings grow.
Strive sold 7 million shares at $90 apiece. After underwriting discounts, commissions and expenses, the company estimated net proceeds of $608.15 million, according to BitcoinTreasuries.net. In an SEC filing, Strive said it intends to use the funds for general corporate purposes, including Bitcoin purchases, working capital, income-generating assets, capital expenditures, share repurchases and acquisitions.
SATS carry a 15% annual dividend on their $100 stated amount, equivalent to $15 per share each year if paid in full. The dividends are cumulative and payable when declared by Strive's board, so any payouts the board declines to declare accrue on the company's books rather than being forgiven. At the $90 IPO price, the stated dividend works out to an annualized amount equal to 16.67% of the purchase price — a payout well above typical preferred-stock yields and part of a financing playbook that has gained traction among publicly traded Bitcoin treasury companies, which use fixed-dividend preferred shares to reach income-oriented investors while keeping discretion over how quickly proceeds are converted into Bitcoin.
At an illustrative Bitcoin price of $82,500, the estimated $608.15 million in net proceeds could purchase approximately 7,372 BTC before fees. If fully allocated to Bitcoin, the purchase would lift Strive's reported holdings from 36,818 BTC to roughly 44,190 BTC, potentially surpassing the 44,000 BTC reported by Metaplanet.
SATS dividends are scheduled to be payable each business day beginning Nov. 9, subject to declaration. The first payment, if declared in full, would include accruals dating back to the Oct. 20 closing.
Strive Chief Risk Officer Jeff Walton said the company carries no debt or maturities and is focused on a single obligation: paying dividends.
