Strive Plans $150 Million Capital Raise to Accelerate Bitcoin Purchases and Slash Debt

MetaMisfit · 2026-02-05T13:07:51+00:00

Strive plans a $150 million follow-on public offering of preferred SATA shares to expand Bitcoin holdings and reduce debt. The strategy involves leveraging preferred equity for flexibility and prioritizing capital for Bitcoin acquisition, debt retirement, and operational needs while managing dividends to support stock valuation.

MetaMisfit

2026-02-05 13:07:51

Abstract generation in progress

Strive has announced plans to pursue a follow-on public offering of preferred SATA shares, targeting approximately $150 million in proceeds. As reported by NS3.AI, this capital mobilization represents a strategic dual-focus initiative: expanding Bitcoin holdings while simultaneously addressing existing debt obligations. The company’s capital allocation strategy underscores a deliberate pivot toward cryptocurrency-backed financial positioning.

Strive’s Preferred Equity Offering Details

The financial vehicle for Strive’s expansion involves issuing additional preferred SATA stock, positioning the company to tap institutional and retail investor appetite. By leveraging preferred equity rather than debt instruments, Strive aims to maintain balance sheet flexibility. The proceeds will be directed across multiple strategic priorities: acquiring incremental Bitcoin positions in the current market environment, retiring convertible senior notes to reduce future interest burdens, and addressing debt obligations inherited from the Semler Scientific acquisition.

Strive’s Multi-Layered Fund Allocation Strategy

The $150 million capital pool serves three critical functions within Strive’s corporate architecture. Primary allocation focuses on Bitcoin accumulation—a strategic asset diversification move during periods of cryptocurrency market volatility. Secondary utilization involves debt retirement, specifically targeting convertible instruments that carry dilution risks. Additionally, Strive will deploy capital toward general corporate liquidity and operational requirements.

Strategic Dividend Management to Support Stock Valuation

Strive plans to employ sophisticated dividend rate adjustments on SATA preferred shares to maintain the stock within targeted trading bands. This proactive price management approach reflects management’s commitment to shareholder value stability. By calibrating dividend yields in response to market conditions, Strive seeks to attract consistent investor participation while controlling cost of capital—a nuanced financial engineering strategy typical of dividend-focused preferred stock structures.

BTC-3,72%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.