Strive Plans $500 Million Preferred-Share Raise for More Bitcoin

Strive is preparing a $500 million fundraising round aimed at expanding its bitcoin holdings. The company plans to issue a new preferred share class, giving investors exposure to a security with a fixed dividend structure rather than directly holding bitcoin.

How the new shares are structured

The new securities, identified as SATS, will offer a fixed 15% dividend yield at par. In practical terms, the dividend rate is set in advance relative to the shares’ stated value, providing a defined distribution for holders under the proposed structure.

SATS will rank behind Strive’s existing SATA preferred shares. SATA carries a variable dividend rate, which is currently 13%, while the new class is designed around a fixed 15% rate.

A financing route for bitcoin purchases

The planned raise links corporate financing with the company’s strategy of acquiring additional bitcoin. Instead of funding those purchases solely through common equity or other forms of borrowing, Strive is using a separate preferred-share class with stated dividend terms and a defined position in the company’s capital structure.

The distinction between the two preferred classes will matter to investors assessing income and priority. SATS offers a fixed rate but is junior to SATA, whose dividend is variable and currently lower than the proposed SATS rate. Those terms describe different trade-offs between distribution certainty and seniority.

The proposal also reflects the range of structures companies can use when seeking capital for digital-asset purchases. The $500 million target and the planned use of proceeds make bitcoin the central focus of this financing, while the preferred-share terms determine how the capital is raised and how investors are positioned relative to one another.

Because the available details are limited, the summary does not specify the timing of the offering, the number of shares involved, or whether the full target has been secured. The key disclosed terms are the $500 million fundraising objective, the planned bitcoin purchases, SATS’ fixed 15% dividend yield at par, and its junior position to SATA.

Source: Coindesk