Strive raises $630 million in SATS IPO, Bitcoin use unclear
Strive raised $630 million by closing its upsized SATS preferred stock IPO on Oct. 20, but has not disclosed how much of the proceeds it may use to buy Bitcoin.
Strive, the Bitcoin treasury company led by Chairman and CEO Matt Cole, sold 7 million SATS preferred shares at $90 each in its upsized initial public offering, which closed Oct. 20. The offering generated $630 million in gross proceeds.
The company estimated net proceeds of $608.15 million after underwriting discounts, commissions and expenses. In a regulatory filing, Strive listed Bitcoin purchases, working capital, income-generating assets, capital expenditures, share repurchases and acquisitions as possible uses of the funds. It did not specify an amount for Bitcoin purchases.
SATS have a stated amount of $100 and carry a 15% annual dividend, or $15 per share if paid in full. At the $90 offering price, that equals an annualized dividend of 16.67% of the purchase price. Dividends are cumulative and payable when declared by Strive’s board.
Subject to board approval, dividend payments are scheduled to begin each business day on Nov. 9. The first payment would include dividends accrued from the IPO closing date of Oct. 20 if the board declares the full amount.
At a Bitcoin price of $82,500, Strive’s estimated net proceeds could purchase about 7,372 BTC before fees if all the funds were allocated to Bitcoin. That would raise the company’s reported holdings from 36,818 BTC to about 44,190 BTC, above Metaplanet’s reported 44,000 BTC.
Strive Chief Risk Officer Jeff Walton described the company’s sole obligation as paying dividends and noted that it has no debt or maturities.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
