Cryptoupdated 35m ago2 min read
Strive Closes $630 Million SATS Preferred Stock IPO, Leaves Bitcoin Purchases Unspecified
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Strive's upsized SATS IPO raised $630 million gross by selling 7 million shares at $90. Net proceeds estimated around $608 million; potential to acquire about 7,372 BTC, allocation unspecified.
8 outlets told this the same way.
SATS IPO closes
Strive, the Bitcoin treasury company led by chairman and CEO Matt Cole, closed its upsized initial public offering of SATS preferred stock on Oct. 20, raising $630 million gross, according to the company’s announcement.
Strive sold 7 million shares at $90 each, and the company estimated net proceeds of $608.15 million after underwriting discounts, commissions and expenses, according to BitcoinTreasuries.net.
Strive did not specify how much of the proceeds it will use to buy Bitcoin (BTC), even though an SEC filing said the funds were intended for general corporate purposes including Bitcoin purchases, working capital, income-generating assets, capital expenditures, share repurchases and acquisitions.
SATS carries a 15% annual dividend on its $100 stated amount, equivalent to $15 per share annually if paid in full, and dividends are cumulative and payable when declared by Strive’s board.
Jeff Walton said Strive has no debt or maturities and is focused on a single obligation: paying dividends.
Bitcoin buy math
Strive’s net proceeds estimate of $608.15 million could purchase approximately 7,372 BTC before fees at an illustrative Bitcoin price of $82,500, according to the company’s figures as described in the coverage.
Strive’s scenario math would increase Strive’s reported holdings from 36,818 BTC to roughly 44,190 BTC if the proceeds were fully allocated to BTC, potentially surpassing Metaplanet’s reported 44,000 BTC.
SATS dividends are scheduled to be payable each business day beginning Nov. 9, subject to declaration, and the first payment, if declared in full, will include accruals dating from the Oct. 20 closing.
Strive chief risk officer Jeff Walton emphasized that the company is focused on paying dividends, while Strive still left the Bitcoin allocation unspecified.
The sources also framed the same uncertainty as investors weighing how SATS cash returns line up with any eventual conversion of new equity capital into Bitcoin.
Dividend timing and outlook
Strive scheduled SATS payments for every business day starting November 9, subject to board approval and the availability of funds that can be legally distributed, and the first payment, if the board approves for the full amount, would cover accumulated and unpaid dividends since the offering’s settlement.
SATS dividends are cumulative, so unpaid amounts continue to accrue under the terms of the security until declared and paid, and the sources described this as a key investor variable.
The coverage also tied the offering’s structure to a dividend yield calculation, with the annualized amount at the $90 IPO price equal to 16.67% of the purchase price.
Strive’s filings and announcements left the exact Bitcoin purchase plan open, but the SEC filing language listed Bitcoin purchases among intended uses alongside working capital, investment in income-generating assets, capital expenditures, share repurchases, and acquisitions.
Jeff Walton reiterated that Strive has no debt or maturities and is focused on paying dividends as the company moves into the period leading up to the Nov. 9 dividend start.