Strive (ASST), a bitcoin-focused treasury and asset management company, has announced a $150 million follow-on offering of its Variable Rate Series A Perpetual Preferred Stock, SATA (SATA).
Proceeds from the offering 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 settling Semler’s borrowings from Coinbase Credit and purchasing 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 exchanges would be exempt from registration, would not generate 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 closed at $99.50, while Strive’s common shares rose 0.8% to $0.89.
