Strive (NASDAQ: SATA) priced an upsized public offering of 1.32 million shares of Series A Perpetual Preferred Stock at $90 per share on Thursday.
The asset management bitcoin treasury company increased the deal size from a previously announced $150 million target to an issuance of 2.25 million shares.
The transaction aims to streamline the corporate balance sheet by retiring convertible debt.
Strive intends to use the net proceeds to redeem outstanding 4.25% convertible senior notes due 2030 issued by its subsidiary, Semler Scientific, and to repay borrowings under a loan with Coinbase Credit.
Management described the financial pivot as a strategic move toward a “perpetual-preferred only amplification model.” By eliminating the convertible notes, the company replaces debt obligations carrying fixed maturity dates with perpetual equity instruments that do not require principal repayment.
Remaining funds from the offering will support day-to-day operations and buying more bitcoins. Strive held approximately 12,797.6 bitcoin as of January 16.
Concurrent with the public offering, Strive entered into private exchange agreements with certain holders of the Semler convertible notes. These holders agreed to swap $90 million notes for approximately 930,000 newly issued shares of its preferred stock, SATA.
SATA carries a stated amount of $100 per share and offers a cumulative dividend at an initial variable rate of 12.25% per annum.
Since launching its first ETF in August 2022, Strive’s asset management division has grown to manage over $2.3 billion in assets, according to the company.
