Strive proposes $150 million preferred stock sale to repay debt, buy bitcoin

Strive (ASST), a bitcoin treasury and asset management company, announced plans for a $150 million follow-on sale of its Variable Rate Series A Perpetual Preferred Stock, SATA (SATA).

The proceeds will be used repay or repurchase portions of debt issued by Semler Scientific, which Strive bought earlier this month in an all-stock transaction. In addition, the funds will also be used toward discharging Semler's borrowings from Coinbase Credit and the acquisition of more bitcoin.

Strive, which has the 11th-largest bitcoin stash among publicly traded companies, is negotiating private exchanges with certain noteholders to swap some or all convertible notes for SATA stock. Any exchanges would be exempt from registration, would not generate cash proceeds and could reduce the size of the public offering.

SATA pays cumulative monthly dividends and is valued at $100 for dividend-payment calculations with an annual payout rate initially set at 12.25%. The rate can be adjusted downward within strict limits, with management targeting a long-term share-price range of $95 to $105. Unpaid dividends compound monthly, with rates that can rise up to 20% annually.

SATA stock closed on Wednesday at $99.50. Strive's common shares rose 0.8% to 89 cents.