Strive Prices $630 Million Preferred Offering With 15% Dividend

Strive has priced an expanded SATS preferred-stock offering expected to raise $630 million before fees. The 7 million shares would accumulate $105 million in dividends a year under the announced base terms.

Strive Increases Offering by Two Million Shares

The company priced the shares at $90 each, expanding the offering from the 5 million shares proposed on Oct. 13. That increases the number of shares offered by 40%.

Each share has a $100 stated amount, giving the offering a combined stated amount of $700 million. The $90 sale price represents a 10% discount and produces the lower expected cash proceeds of $630 million.

Underwriting discounts, commissions and offering expenses will reduce the amount Strive receives. Settlement is scheduled for Oct. 20, subject to customary closing conditions.

SATS Accumulates Dividends at 15% a Year

The annual dividend rate applies to each share’s $100 stated amount, giving a base annual dividend of $15 per share. At the $90 offering price, that represents a simple annual cash yield of about 16.67% if paid in full.

Dividends accumulate even when they are not declared. Payments require approval by Strive’s board or an authorized committee and must come from legally available funds.

Regular dividend dates begin Nov. 9 and fall on each business day under the governing terms. If declared in full, the initial payment will include dividends accumulated since closing.

Strive also plans to add the equivalent of $22.50 per share to its existing dividend reserve at closing. For 7 million shares, that totals $157.5 million, covering 18 months of base dividends. The company intends to fund the addition with existing cash and securities.

Under its preliminary prospectus, SATS would rank behind Strive’s existing SATA preferred stock and ahead of common shares for dividends and liquidation distributions.

Strive Includes Bitcoin Among Potential Uses

Strive intends to use the net proceeds for general corporate purposes, including purchases of Bitcoin and Bitcoin-related products. Other potential uses include working capital, income-generating assets and capital expenditure.

The company may also repurchase its Class A common shares or SATA preferred shares or acquire businesses, assets and technologies that complement its operations.

The pricing announcement does not specify how much net cash will be allocated to Bitcoin. It establishes the financing terms ahead of settlement, rather than announcing a completed Bitcoin purchase.