Strive (ASST), an asset management company building a bitcoin The Treasury is seeking to raise $160 million after expanding the initial public offering of 2 million of its Series A floating rate perpetual preferred stock (SATA) and setting a price of $80 per share.
The offering, scheduled to close Nov. 10, was increased by 750,000 shares, the company said in a statement Wednesday. The net proceeds will be used for general corporate purposes, including bitcoin and bitcoin-related investments, working capital, and potential business acquisitions.
The Dallas-based company holds the 17th largest bitcoin holdings from a publicly traded corporation, according to Bitcointreasuries.net, with 5,958 BTC.
The shares will have an initial dividend rate of 12% on a declared amount of $100, payable monthly beginning December 15 when declared by Strive’s board of directors. Under certain conditions, the rate can be adjusted within the limits linked to the Secured Overnight Financing Rate for a term of one month.
Unpaid dividends will accrue monthly at an increasing rate of up to 20% annually, and Strive will set aside a dividend reserve that will cover 12 months of payments.
Strive can redeem all or part of SATA shares at $110 per share plus accrued dividends. You also have the right to redeem all shares if less than 25% remains outstanding or in certain tax events.
If a fundamental change occurs, holders can require Strive to buy back their shares at $100 plus accrued dividends.
The company intends to manage the dividend rate to keep SATA’s share price between $95 and $105. Liquidation preference starts at $100 per share and adjusts daily based on trading activity.
Strive shares rose 17% on Wednesday and rose another 8% in pre-market trading Thursday to $1.58.
