Strive Closes $630M SATS Preferred Stock IPO but Keeps Bitcoin Purchase Plans Open

Bitcoin treasury company Strive, led by chairman and CEO Matt Cole, closed its upsized initial public offering of SATS preferred stock on Oct. 20, raising $630 million gross. The company sold 7 million shares at $90 each and expects net proceeds of about $608.15 million after underwriting discounts, commissions and expenses. It has not said how much of that money will go toward buying Bitcoin.

How Strive Plans to Use the Proceeds

In an SEC filing, Strive said the funds could cover general corporate purposes, including Bitcoin purchases, working capital, income generating assets, capital expenditures, share repurchases and acquisitions. At an illustrative Bitcoin price of $82,500, the net proceeds could buy roughly 7,372 BTC before fees. That would lift Strive’s holdings from 36,818 BTC to about 44,190 BTC, which could put it just ahead of Metaplanet’s reported 44,000 BTC if the full amount is used.

SATS Dividend Terms

SATS carry a 15% annual dividend on a $100 stated amount, or $15 per share a year if paid in full. At the $90 offering price, that equals an annualized 16.67% of the purchase price. Dividends are cumulative and payable when declared by the board. They are scheduled to be payable each business day starting Nov. 9, subject to declaration, and the first payment would include accruals from the Oct. 20 closing.

Chief risk officer Jeff Walton said the company has no debt or maturities and is focused on a single obligation, which is paying dividends.