Digital Asset Treasury (DAT) firm Strive (Nasdaq: ASST) is following the Strategy playbook, now issuing its own variable rate preferred stocks, per a company announcement.
The company will sell 1.25 million shares of Variable Rate Series A Perpetual Preferred Stock, or “SATA,” in an initial public offering subject to market conditions. Proceeds will fund bitcoin purchases, income-producing assets, stock buybacks, working capital, and debt repayment. Strive may also use funds for acquisitions.
Similar to Strategy’s “STRC” note, the preferred shares carry a stated value of $100 and an initial 12% annual dividend, paid monthly beginning Dec. 15. The company may adjust the rate monthly, within limits tied to the one-month SOFR benchmark.
Unpaid dividends will compound monthly, up to a 20% annual rate. Strive said it will set aside a reserve covering the first year of dividend payments. The company may redeem the shares once listed on Nasdaq or the NYSE at $110 each plus accrued dividends. Holders can require Strive to repurchase shares after a “fundamental change.”
As of October 27, Strive holds 5,958 bitcoins and manages over $2 billion in assets through Strive Asset Management LLC. ASST rose 9% Monday morning, following the announcement.
