Strive Proposes High-Yield Preferred Stock Offering to Expand Bitcoin Treasury

Strive Outlines Preferred Stock Offering for Bitcoin Treasury Expansion

U.S. equities saw a notable event on Monday, with Strive Inc. (NASDAQ: ASST) announcing plans for an initial public offering (IPO) of a new class of preferred shares. The proposed offering aims to raise capital primarily for the acquisition of additional Bitcoin (BTC), marking a strategic move to expand the company's digital asset treasury. This development closely mirrors previous capital-raising efforts by firms like Strategy (NASDAQ: MSTR).

Details of the Variable Rate Series A Perpetual Preferred Stock

Strive intends to offer 1,250,000 shares of its Variable Rate Series A Perpetual Preferred Stock, designated as SATA Stock. Each SATA share will carry a stated amount of $100 and is designed to provide an initial annual dividend rate of 12.00%. These cumulative dividends are slated to be payable monthly in arrears, commencing on December 15, 2025. To underpin these dividend commitments, Strive plans to establish a dividend reserve amounting to $12.00 per share of SATA Stock, sufficient to cover the first 12 months of dividend payments at the initial rate. While Strive reserves the right to adjust the monthly regular dividend rate, its stated intention is to manage the rate to maintain the SATA Stock within a long-term trading range of $95 to $105 per share.

The net proceeds from this offering are earmarked for general corporate purposes. The primary objective is the acquisition of Bitcoin and Bitcoin-related products. Funds may also be allocated for working capital, the purchase of income-generating assets, other capital expenditures, repurchases of the company's Class A common stock, and/or repayment of debt. As of October 27, 2025, Strive holds approximately 5,957.9 Bitcoins, valued at roughly $637 million. This figure could increase significantly, potentially to around 11,000 Bitcoins, should the company finalize its all-stock merger with Semler Scientific (NASDAQ: SMLR).

Market Context and Strategic Rationale

The decision to issue preferred stock comes as Strive's (ASST) common stock has experienced considerable volatility. Following a recent SPAC deal and its pivot to a Bitcoin-focused asset manager, ASST shares have been trading at a discount to the underlying value of its Bitcoin holdings, reflected in a market value per share below the net asset value (mNAV below 1). In such a scenario, issuing additional common stock for Bitcoin purchases would be highly dilutive to existing shareholders. The preferred stock offering provides a non-dilutive capital-raising mechanism, allowing Strive to expand its Bitcoin treasury without further impacting common shareholder equity.

On Monday, ASST shares declined by 2.3%, coinciding with a 4% slide in the price of Bitcoin to approximately $106,000. This reaction indicates that while the long-term strategy may be perceived positively, immediate market sentiment remains cautious, especially in a downward-trending Bitcoin environment.

Precedent Set by Strategy's Diversified Capital Strategy

Strive's approach draws a direct parallel to the capital-raising strategies employed by Strategy Inc. (formerly MicroStrategy). Strategy, a pioneer in the corporate Bitcoin treasury model, has successfully utilized a mix of equity and various preferred stock offerings to finance its substantial Bitcoin acquisitions. For instance, Strategy has offered different classes of preferred shares, such as STRK (convertible with an 8% non-cumulative dividend), STRF (non-convertible with a 10% cumulative dividend), and STRD (non-convertible with a 10% non-cumulative dividend, featuring a higher risk-reward profile). These diverse instruments allow Strategy to appeal to different investor segments and broaden its access to capital for Bitcoin purchases. Strategy's expanded "42/42" capital raise plan, aiming for $84 billion through equity and convertible notes by 2027, underscores the scale and sophistication of such treasury strategies.

The issuance of dividend-paying preferred stock linked to digital assets presents both opportunities and risks. For investors, it offers a potentially attractive income stream tied to the performance and accumulation strategy of a Bitcoin treasury company. However, the success of such an instrument is intrinsically linked to the stability and growth of Bitcoin's value, as well as the company's ability to sustain elevated dividend rates. Key risks include the potential for sustained cash dividends to underperform if trading or asset returns are weak, and the impact on liquidity from monthly cash obligations, particularly if dividends are compounded due to missed payments.

Outlook and Key Considerations

Looking ahead, the successful execution of Strive's SATA offering and its subsequent deployment of capital into Bitcoin will be closely monitored. The company's ability to maintain the SATA Stock price within its targeted range of $95-$105 per share through dividend rate adjustments will be a crucial indicator of investor confidence in the preferred shares. Investors will also be watching for developments in Strive's proposed merger with Semler Scientific, which could significantly augment its Bitcoin holdings.

The broader market will continue to assess the viability and risks associated with "digital asset treasury" stocks. The performance of Bitcoin itself remains a fundamental driver for companies like Strive and Strategy. Upcoming economic reports, interest rate policy decisions, and overall sentiment in the cryptocurrency market will all play a role in shaping the trajectory of these specialized investment vehicles.