Strive (ASST), an asset management company building a bitcoin treasury, is looking to raise $160 million after increasing the initial public offering of 2 million of its Variable Rate Series A perpetual preferred stock (SATA) and pricing it at $80 per share.
The offering, scheduled to close on November 10, was increased by 750,000 shares, the company said in a Wednesday announcement. The net proceeds will be used for general corporate purposes, including bitcoin and bitcoin-related investments, working capital and potential company acquisitions.
The Dallas-based company has the 17th largest stash of bitcoin by a publicly traded company, according to Bitcointreasuries.net, with 5,958 BTC.
The stock will have an initial dividend rate of 12% on a stated amount of $100, payable monthly starting December 15th when declared by Strive’s board of directors. Under certain conditions, the rate can be adjusted within limits that are tied to a one-month term on the guaranteed day-to-day financing rate.
Foregone dividends will compound monthly at an increasing rate up to 20% per annum, and Strive will set aside a dividend reserve covering 12 months of payments.
Strive can redeem all or part of the SATA stock at $110 per share. share plus accrued dividend. It also has the right to redeem all shares if fewer than 25% remain outstanding or in certain tax events.
If a fundamental change occurs, holders can demand that Strive buy back their shares at $100 plus accrued dividends.
The company aims to manage the dividend rate to keep the SATA share price between $95 and $105. The liquidation preference starts at $100 per share and adjusts daily based on trading activity.
Strive shares rose 17% on Wednesday and rose another 8% in premarket trading Thursday to $1.58.
