Strive Targets $500 Million From New SATS Preferred Offering
The proposed shares carry a 15% fixed dividend, with Strive planning to reserve cash for the first 18 months of payments.
Key takeaways
- Strive aims to sell 5 million SATS shares at $100 each.
- SATS will carry a 15% fixed dividend and rank below Strive’s existing SATA preferred shares.
Strive plans to raise $500 million by selling 5 million shares of a new perpetual preferred stock, SATS, at $100 each. The shares will carry a fixed 15% dividend, CoinDesk reported.
The company said it may use the proceeds to buy more bitcoin, acquire income-producing assets or repurchase stock. SATS will rank below Strive’s existing perpetual preferred shares, SATA, which had a variable rate of 13%, according to CoinDesk.
At the offering’s closing, Strive intends to set aside enough cash to cover 18 months of SATS dividend payments. Like SATA, the new shares are set to pay dividends daily.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
