Strive (ASST), a bitcoin treasury and asset management firm, has announced a $150 million follow-on offering of its Variable Rate Series A Perpetual Preferred Stock, SATA (SATA).
The proceeds will be used to repay or repurchase debt issued by Semler Scientific, which Strive acquired earlier this month in an all-stock transaction. Additional funds will go toward paying down Semler’s borrowings from Coinbase Credit and acquiring more bitcoin.
Strive, which holds the 11th-largest bitcoin reserve among publicly traded companies, is also negotiating private exchanges with select noteholders to swap some or all of their convertible notes for SATA shares. These private exchanges would be exempt from registration, generate no cash proceeds, and could reduce the size of the public offering.
SATA pays cumulative monthly dividends and is valued at $100 for dividend calculations, with an initial annual payout of 12.25%. The dividend rate can adjust downward within defined limits, and management targets a long-term share price range of $95 to $105. Unpaid dividends compound monthly, with rates potentially rising to 20% annually.
On Wednesday, SATA stock closed at $99.50, while Strive’s common shares rose 0.8% to $0.89.
