Seek to raise $160 million after sitting BTC associated with preferred stock offering
Strive (ASST), an asset management company building a bitcoin Treasury, is looking to raise $160 million next Revolt of the initial public offering of 2 million variable rate series of a Perpetual Preferred Stock (SATA) and pricing it at $80 per share.
The offer, which is scheduled to close on November 10, has been increased by 750,000 shares, the company said in a release Wednesday. 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 corporation, according to bitcointreasures.net, with 5,958 BTC.
The stock will carry a 12% initial dividend rate on a $100 stated amount, payable monthly beginning December 15 when declared by Strive’s board. Under certain conditions, the rate may be adjusted within limits tied to the one-month term secured by the overnight financing rate.
Unearned dividends are compounded monthly at an increasing rate of up to 20% per year, and efforts are made to set aside a dividend reserve covering 12 months of payments.
Endeavor can redeem all or part of SATA stock at $110 per share plus accrued dividends. It also has the right to redeem all shares if less than 25% remain outstanding or in certain tax events.
If a fundamental change occurs, holders may need to make an effort to repurchase their shares at $100 plus accrued dividends.
The company intends to manage the dividend rate to maintain SATA’s stock price between $95 and $105. The liquidation preference starts at $100 per share and is adjusted daily based on trading activity.
The struggling shares rose 17% on Wednesday and climbed another 8% in pre-market trading Thursday to $1.58.
