Strive, Inc., a bitcoin treasury and asset management firm founded in 2022 by Vivek Ramaswamy, is seeking to raise an additional $150 million through a secondary public offering.
The proposed raise follows Strive’s oversubscribed November offering and comes after its SATA preferred stock hit $100 in trading.
Use of proceeds
Strive said it plans to use the capital to buy bitcoin and retire debt from convertible senior notes issued by its subsidiary, Semler Scientific, as well as borrowings from Coinbase Credit Inc.
The convertible senior notes pay 4.25% and are due in 2030.
The company said it is “negotiating separate and individual transactions” with some noteholders to exchange the notes for SATA stock.
Preferred stock details
Strive previously raised about $160 million by offering 2 million shares of a new dividend-bearing Variable Rate Series A Perpetual Preferred Stock, SATA, which trades alongside its existing ASST stock.
SATA pays cumulative monthly dividends at a current annualized rate of 12.25%, payable only in cash.
Strive said SATA’s rate can be adjusted to achieve its “stated long-term range of $95 and $105 per share.”
Market reaction and holdings
VanEck Head of Research Matt Sigel wrote on X:
“After hitting $100 in trading this afternoon for the first time, $ASST Strive announces $150M follow-on offer of SATA PREF, price TBD, to buy more BTC and retire the Semler converts.”
Strive manages a range of ETFs and investment products with about $2.3 billion in assets under management.
After shareholders approved the Semler acquisition on Jan. 13, Strive’s ASST shares fell and were trading below $0.90, down nearly 80% from September.
