Strive's $630 Million SATS Raise Leaves Bitcoin Purchase Size Open

Strive closed a $630 million preferred-share offering on Oct. 20, giving the Bitcoin (BTC) treasury company capital for possible purchases while leaving the amount earmarked for the asset unspecified.

Strive sold 7 million SATS shares at $90 each. After underwriting discounts and estimated expenses, the offering was expected to bring in about $608.15 million. The company listed Bitcoin purchases among possible uses of the proceeds, along with working capital, income-producing assets, capital spending, share repurchases and acquisitions.

At an illustrative price of $82,500 per BTC, spending all the estimated net proceeds on Bitcoin would amount to roughly 7,372 BTC before trading costs. That figure depends on Strive using the entire amount for Bitcoin, which it has not committed to do.

SATS is a perpetual preferred share with a cumulative 15% annual dividend on a $100 stated amount, equivalent to $15 per share over a full year. Strive’s board determines when dividends are paid.

The first regular dividend payment date is scheduled for Nov. 9. If declared in full, that payment will include dividends accumulated after the Oct. 20 closing.