Strive Upsizes Preferred Stock Offering To $160 Million To Fund Bitcoin Purchases

• Strive increased its preferred stock offering from 1.25 million to 2 million shares at $80 a piece.
• The new SATA stock carries a 12% annual dividend, designed to fund Bitcoin acquisitions.
• Strive’s current holdings stand at roughly 6,000 Bitcoin, with a target of 11,000 BTC after its merger with Semler Scientific.

Strive (ASST) on Thursday upsized its inaugural preferred stock offering by 38%, aiming to raise more than $160 million through the sale of two million shares priced at $80 each.

The company is following the Bitcoin treasury playbook initiated by Strategy (MSTR), as smaller competitors attempt to replicate Michael Saylor's digital credit formula. ASST’s stock climbed nearly 9% in pre-market trade, with retail sentiment on Stocktwits trending in the ‘bullish’ territory over the past day. Message volume remains elevated at ‘high’ levels.

Preferred Offering Mirrors Strategy’s Bitcoin Playbook

Strive issued Variable Rate Series A Perpetual Preferred Stock (SATA) with an initial 12% annual dividend paid monthly. Like Strategy's suite of preferred instruments, Strive structured the offering to raise capital for Bitcoin (BTC) purchases without diluting common shareholders.

The 38% upsize from the initially announced 1.25 million shares to 2 million signals institutional appetite despite Strive's diminutive scale compared to MSTR. The company currently holds around 6,000 Bitcoin, a fraction of Strategy's hoard of more than 640,000 BTC, but aims to reach 11,000 through a pending merger with Semler Scientific (SMLR).

Yet the $80 pricing, compared to the $100 par value, hints at investor caution – unlike Strategy's Stretch, which was priced at $90 and quickly traded above par. The company commits to maintaining SATA's trading range between $95 and $105 through dividend rate adjustments, a mechanism MSTR doesn’t use.

Digit Asset Treasuries Have Had A Rough Month

The company stated that the proceeds will be used to fund Bitcoin acquisitions, repay debt, and support working capital. Digital asset treasury (DAT) stocks have plummeted in recent months, with many now trading below their net asset value, as the crypto market has experienced two drastic liquidation events in less than a month. ASST’s stock is down more than 45% in the last month, while MSTR’s stock – commonly seen as a proxy for Bitcoin – has dipped nearly 30%. 

Bitcoin’s price tried to regain ground in Thursday morning trade, holding near $120,500, essentially flat over the past 24 hours. The broader cryptocurrency market ticked up 0.3%, with total market capitalization at roughly $3.4 trillion, down from more than $4 trillion in October. On Stocktwits, retail sentiment around the apex cryptocurrency dropped to ‘neutral’ from ‘bullish’ territory over the past 24 hours, even as chatter remained at ‘high’ levels.

Read also: Ripple’s XRP Leads Crypto Rebound, While Bitcoin ETFs Log Second-Worst Outflow Streak This Year

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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