TLDR
- Strive (ASST) stock closed at $27.60 on Tuesday, then announced a new 15% fixed-dividend preferred called SATS.
- The company hopes to raise $500 million by selling 5 million SATS at $100 each.
- Strive bought 3,311 bitcoin last week, taking its total to 32,773 BTC.
- Warrant holders exercised $208 million, and bitcoin per share still went up.
- Michael Saylor praised the strategy, calling Strive’s growth fast.
Strive (ASST) stock closed at $27.60 on Tuesday. It was little changed on the day, trading near $27.52 at last look.
After the close, the bitcoin treasury company announced a new perpetual preferred stock called SATS. It will pay a fixed 15% dividend.
Strive plans to sell 5 million SATS at $100 each. That would bring in $500 million.
The company says it may use the money to buy more bitcoin. It could also buy income-producing assets or repurchase its own stock.
Where SATS Fits in the Capital Structure
SATS will rank below Strive’s existing preferred stock, SATA. SATA pays a variable rate, which is currently 13%.
Like SATA, SATS will pay its dividend daily. At closing, Strive intends to set up a reserve equal to the first 18 months of SATS dividends.
Strive also changed its governing documents. SATA now has a binding $100 minimum issuance price, so the company cannot sell it below that level.
SATA was trading at $99.40 at last look. That is just under the new floor.
A Fast Run of Bitcoin Buying
The offering follows a busy week. In a Tuesday SEC filing, Strive said it bought 3,311 bitcoin in the week ending Oct. 9 at an average price of about $84,500.
Total holdings now stand at 32,773 BTC, worth about $2.7 billion. Three months ago, the figure was below 20,000.
That makes Strive the fifth-largest publicly traded corporate bitcoin holder. Many treasury companies, including larger peer Strategy, have not been able to add much lately.
Bitcoin traded near $83,300 on Tuesday, according to Yahoo Finance. That is a little below what Strive paid on average last week.
CEO Matt Cole said on X that investors exercised $208 million in warrants. About 15.3 million warrants were left ahead of their Tuesday expiration.
Strive’s bitcoin reserves grew 11.2% over the period. Its effective common stock count rose 9.4%, so each unit of common stock now has a bit more bitcoin behind it.
Saylor, whose company pioneered the model, weighed in on X. “Strive is turning demand for digital equity (ASST) and digital credit (SATA) into demand for Bitcoin,” he wrote.
Strategy added 250 BTC last week, a smaller buy than Strive’s. Its total is 848,250 BTC, still the most among public companies.
Strive announced SATS on Tuesday evening, after markets closed. The offering has not priced yet.
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