Debt Repayment and Funding: Oversubscribed $225M Preferred Stock Offering
Strive, Inc. announced today that it has closed an upsized and oversubscribed follow-on offering of its Variable Rate Series A Perpetual Preferred Stock, raising $225 million amid strong institutional demand. The firm sold 1.32 million shares of the preferred stock, known as SATA, at $90 per share, after demand exceeded $600 million. The offering was initially targeted at $150 million before being increased alongside a series of privately negotiated note exchanges.
As part of the transaction, Strive retired $110 million of the $120 million in debt assumed from Semler Scientific, including $90 million of Semler’s 4.25% convertible senior notes due 2030, which were exchanged for approximately 930,000 shares of SATA stock. The company also used proceeds to fully repay a $20 million loan with Coinbase Credit, leaving all of Strive’s bitcoin holdings unencumbered. The remaining $10 million of Semler-related debt is expected to be retired by April 2026.
Accelerated Deleveraging and Strategic Shift to Preferred Equity
This quick deleveraging comes just 11 days after Strive closed the Semler acquisition, placing the firm well ahead of its previously stated goal to retire the debt within 12 months. Chairman and CEO Matt Cole commented: “By quickly returning to a preferred equity–only amplification structure, we are matching the long-duration nature of bitcoin with long-duration financing. We view preferred equity as the optimal mechanism for scaling bitcoin exposure.” According to Strive, its amplification ratio — total debt and preferred equity divided by the market value of bitcoin held — stands at 37.2%, with 97.7% derived from preferred equity.
Bitcoin Accumulation: 333.89 BTC Added, Total Holdings Reach 13,131.82 BTC
Strive also disclosed that it purchased an additional 333.89 bitcoin at an average price of $89,851, bringing total holdings to 13,131.82 BTC as of January 28. The company is now the tenth-largest publicly traded corporate holder of bitcoin globally. The firm reported a quarter-to-date bitcoin yield of 21.17%, a metric reflecting growth in bitcoin exposure per common share. Chief Investment Officer Ben Werkman remarked: “The successful completion of this oversubscribed SATA follow-on offering reflects robust and growing investor demand for digital credit. In just over four months, Strive has scaled from zero bitcoin to become a top-10 publicly traded holder.”