Strive set the price of its new SATS preferred stock at $90 a share late on Oct. 15 and increased the size of the deal to 7 million shares, according to the Nasdaq-listed bitcoin treasury company. At that price, gross proceeds are expected to total about $630 million before underwriting discounts and expenses. The sale is scheduled to settle on Oct. 20.
When Strive launched the offering on Oct. 13, it had planned to sell 5 million shares. The security being sold is the 15.00% Series A Perpetual SATS Preferred Stock, which carries a cumulative dividend of 15% a year on a $100 stated amount per share. Because investors are buying the stock at $90, they are paying less than the figure used to calculate the payout.
Some outlets have described the transaction as a $700 million deal by multiplying 7 million shares by the $100 stated amount. At the actual $90 sale price, though, gross proceeds come to about $630 million.
Dividends accrue daily and, if declared by the board, are payable each business day starting Nov. 9. Strive said it plans to use the proceeds for general corporate purposes, including buying more bitcoin and bitcoin-related products, acquiring income-generating assets, and repurchasing its Class A common stock or SATA preferred. At closing, the company intends to add $22.50 per SATS share to its existing dividend reserve, an amount equal to 18 months of dividends.
SATS sits below SATA and above common stock
According to the preliminary prospectus supplement, SATS ranks below SATA, Strive’s variable-rate preferred stock, and above the company’s common stock in the capital structure.
Strive made SATA’s $100 minimum sale price binding on Oct. 13. The new SATS security instead offers a fixed rate. CEO Matt Cole said in an investor presentation that, unlike SATA, SATS does not have a target trading range.
Cole said Strive had seen strong demand from investors for income stability and linked the timing of the issuance to the expiration of the company’s traditional warrants. He said, “With the expiry of the warrants, we felt like now was the perfect opportunity to launch a second preferred equity in our capital structure.”
Warrant exercise brought in cash as bitcoin holdings grew
Strive disclosed on Oct. 14 that holders exercised 273,493,909 traditional warrants covering 13,674,703 Class A shares on Oct. 12 and 13. Those exercises are expected to generate $369.2 million in gross proceeds.
The company also bought 2,822 BTC over the same two days at about $83,266 per bitcoin. Before those purchases, Strive held about 32,773 BTC as of Oct. 9 and had no consolidated debt, according to the prospectus.
Earlier SATA deal also priced below stated value
Strive’s first preferred stock also came to market below the $100 stated amount. The company priced the SATA IPO at $80 a share on Nov. 5, 2025, increased the size of that deal by 750,000 shares to 2 million, and raised about $160 million.
As of Oct. 9, 14,030,176 SATA shares were outstanding. Earlier this month, Strive also disclosed a buyback facility for that stock.