Strive sets IPO price for enlarged SATS preferred issue at $90 a share

what happened

Strive Inc. has fixed the price at $90 per share for an expanded offering of 15% Series A perpetual preferred shares trading under the SATS ticker, according to Seeking Alpha. The deal was enlarged by 2 million shares, bringing the total to 7 million, and settlement is slated for October 20.

Gross proceeds are estimated at roughly $630 million before underwriting fees and costs. The company plans to direct the funds toward buying bitcoin and related products, acquiring income-producing assets, covering working capital and capital spending, buying back its Class A common shares or its Variable Rate Series A preferred, and acquiring businesses or technologies that fit its current operations.

The stock rose about 4% on Thursday.

why it matters

For an issuer holding a large part of its capital in bitcoin, the raise provides money to expand its crypto position and repurchase its own securities. The fixed 15% coupon on a $100 stated amount makes the preferred a yield-oriented instrument, so investors will likely weigh bitcoin holdings growth against the dividend burden. A dividend reserve covering the first 18 months of payments, equal to $22.50 per share, is also planned.

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