Strive raising $500 million to buy additional bitcoin with new preferred share class
SATS will offer a fixed 15% dividend yield at par and be junior to the company's existing SATA, which pays a variable rate (currently 13%).
Bitcoin treasury company Strive ASST$27.60·Market Closed on Tuesday evening announced a new perpetual preferred stock, SATS, with a 15% fixed dividend.
The company is aiming to sell 5 million shares at $100 per share, for a capital raise of $500 million, with proceeds to be used to purchase additional bitcoin BTC$83,498.63, acquire income-producing assets, or buy back stock.
The new share class will sit junior to Strive’s current perpetual preferred, SATA, which has a variable rate (currently 13%).
At closing of the offering, the company intends to establish a dividend reserve equal to the first 18 months of dividend payments on SATS.
Unlike most bitcoin treasury companies, including far larger peer Strategy, Strive has in recent weeks been able to significantly increase its bitcoin holdings.
The company last week acquired 3,311 bitcoin, bringing total holdings to 32,773 coins, currently worth about $2.7 billiion. Three months ago, holdings were below 20,000 coins.
Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%. GENIUS pushes yield off-chain; TAM grows to $4B in 3 years.
Asanat Analysis — Why it matters
Strive's $500M preferred share raise signals sustained institutional appetite for bitcoin-backed securities despite volatile macro conditions. The 15% fixed yield on SATS—junior to existing SATA shares—reveals a capital stack increasingly layered with tranched risk profiles. This structure mirrors traditional asset-backed securitization, suggesting the bitcoin treasury company model is normalizing corporate financing methods beyond vanilla equity.
The move reflects two sector dynamics: (1) corporations treating bitcoin as treasury reserve continues expanding, requiring diverse financing mechanisms; (2) institutional investors now demand yield-bearing equity instruments rather than pure equity exposure to BTC proxy companies. That SATS sits subordinate to SATA indicates Strive is comfortable with higher leverage to fund incremental BTC purchases—a bet that BTC appreciation outpaces 15% annual carry costs. The $500M quantum suggests conviction in scale before potential spot-BTC ETF and regulatory clarity cycles shift capital allocation.