Strive (ASST), an asset management company building a bitcoin treasury, is looking to raise $160 million after increasing the initial public offering of 2 million of its Series A Perpetual Floating Rate Preferred Stock (SATA) and pricing them at $80 per share.
The offering, scheduled to close on November 10, was increased by 750,000 shares, the company said in a statement released Wednesday. The net proceeds will be used for general corporate purposes, including bitcoin and bitcoin-related investments, working capital and potential business acquisitions.
The Dallas-based company holds the 17th largest bitcoin stash of a publicly traded company, according to Bitcointreasuries.net, with 5,958 BTC.
The stock will carry an initial dividend rate of 12% on a declared amount of $100, payable monthly beginning December 15 when declared by the Strive board of directors. Under certain conditions, the rate can be adjusted within limits linked to the secured one-month overnight financing rate.
Missed dividends will compound monthly at an increasing rate of up to 20% per year, and Strive will build a dividend reserve covering 12 months of payments.
Strive may repurchase all or part of SATA stock at $110 per share plus accrued dividends. It also has the right to repurchase all shares if less than 25% remains or during certain tax events.
If a fundamental change occurs, holders can demand that Strive repurchase their shares at $100 plus accrued dividends.
The company aims to manage the dividend rate to keep the SATA stock price between $95 and $105. Liquidation preference starts at $100 per share and adjusts daily based on trading activity.
Strive shares rose 17% on Wednesday and were up another 8% in pre-market trading on Thursday to $1.58.
