Strive (ASST), a publicly traded bitcoin Treasury and asset-management company, said it arranged a $500 million offering (ATM) for its Variable Rate Series A Perpetual Preferred Stock (SATA) to help finance further purchases of the largest cryptocurrency.
Paying a dividend of 12% with an effective yield of nearly 13%, SATA is deliberately modeled after Strategy’s ( MSTR ) STRC money market style perpetual preferred equity. SATA is currently trading around $91, below its par value of $100. An IPO allows a company to quickly raise money by selling new shares close to the current market price.
The proceeds can be used to acquire bitcoin, buy income-generating assets, support working capital, buy back common stock or pursue acquisitions, the company said Tuesday. Strive, which holds about 7,525 bitcoin and is in the process of buying Semler Scientific ( SMLR ), ranks as the 14th largest publicly traded bitcoin company.
Strive’s common stock, ASST, is trading near $1 and is down about 2% in premarket activity.
