Strive to Raise $160 Million After Upsizing BTC-Linked Preferred Stock Offering

Strive (ASST), an asset management company building a bitcoin BTC$102,817.22 treasury, is looking to raise $160 million after upsizing the initial public offering of 2 million of its Variable Rate Series A perpetual preferred stock (SATA) and pricing it at $80 per share.

The offering, scheduled to close on Nov. 10, was increased by 750,000 shares, the company said in a Wednesday release. 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 stash of bitcoin by a publicly traded corporation, according to Bitcointreasuries.net, with 5,958 BTC.

The stock will carry a 12% initial dividend rate on a $100 stated amount, payable monthly starting Dec. 15 when declared by Strive’s board. Under certain conditions, the rate can be adjusted within limits tied to the one-month term Secured Overnight Financing Rate.

Missed dividends will compound monthly at an increasing rate up to 20% per annum, and Strive will set aside a dividend reserve covering 12 months of payments.

Strive may redeem all or part of the SATA stock at $110 per share plus accrued dividends. It also has the right to redeem all shares if fewer than 25% remain outstanding or in certain tax events.

If a fundamental change occurs, holders may require Strive to repurchase their shares at $100 plus accrued dividends.

The company aims to manage the dividend rate to keep the SATA stock price between $95 and $105. The liquidation preference starts at $100 per share and adjusts daily based on trading activity.

Strive shares rose 17% on Wednesday and were up another 8% in pre-market trading Thursday at $1.58.