By Tom Whitfield

Strive (ASST), the publicly traded bitcoin treasury company, announced on Tuesday evening a $500 million capital raise through a new perpetual preferred stock carrying a 15% fixed dividend. The company will offer 5 million shares of the new class, named SATS, at $100 per share, according to the announcement.

The structure places SATS junior to Strive's existing perpetual preferred stock, SATA, which pays a variable rate currently set at 13%. Like SATA, the new instrument will pay dividends daily. At closing of the offering, Strive intends to establish a reserve sufficient to cover the first 18 months of dividend payments on SATS.

What will Strive do with the proceeds?

The company outlined three uses for the $500 million: purchasing additional bitcoin, acquiring income-producing assets, or buying back stock. The allocation split among those options was not specified in the announcement.

The raise arrives as Strive has distinguished itself among bitcoin treasury companies through sustained accumulation. Last week the company acquired 3,311 bitcoin, bringing total holdings to 32,773 coins, worth approximately $2.7 billion at current prices. Three months ago, the company held fewer than 20,000 coins — meaning Strive has added more than 12,000 bitcoin in a single quarter.

That pace stands out because most bitcoin treasury companies, including the far larger Strategy, have not been able to meaningfully increase their holdings in recent weeks. Strive's growth has come despite conditions that have constrained accumulation across the sector.

How does the preferred stack work?

The two-tier preferred structure gives Strive two distinct funding instruments:

• SATA: existing perpetual preferred, variable dividend rate, currently 13%, paid daily
• SATS: new perpetual preferred, fixed 15% dividend at par, paid daily, junior to SATA in the capital stack

The junior ranking means SATS holders absorb losses ahead of SATA holders in a downside scenario, a position typically compensated with a higher coupon — consistent with the 200-basis-point spread between the two dividend rates.

The 18-month dividend reserve addresses a practical concern for preferred investors in treasury companies: the ability of the issuer to keep paying distributions if bitcoin prices fall sharply. By ring-fencing roughly $112.5 million at closing — 15% of $500 million annually, paid over 18 months — Strive guarantees near-term coupon coverage independent of bitcoin market conditions.

Why preferred stock instead of convertible notes?

The move extends a funding playbook that bitcoin treasury companies have developed to match different investor appetites. Where convertible notes appeal to equity upside seekers, perpetual preferred stock targets income-focused capital with contractual daily distributions.

The fixed 15% rate on SATS, versus SATA's currently 13% variable rate, prices the new issue's junior status and lock-in explicitly. Daily dividend accrual is a feature more granular than conventional quarterly-pay preferreds, mirroring yield mechanics familiar to crypto-native investors.

A successful raise would add meaningful capacity relative to Strive's existing position. The $500 million target equals roughly 18.5% of the current value of the company's 32,773-bitcoin holding, and proceeds deployed into bitcoin would increase holdings by a comparable proportion if purchased at current prices.

What comes next?

The offering's completion now depends on investor demand for a junior, fixed 15% instrument in a sector where most peers have slowed accumulation. If Strive prices the full 5 million shares, it will hold one of the larger preferred stacks among publicly traded bitcoin treasury companies — and a reserve obligation it must fund at closing before a single additional bitcoin is bought.

Watch for the final allocation among bitcoin purchases, income-producing asset acquisitions, and share buybacks once the offering closes, as that breakdown will signal whether Strive is doubling down on its treasury strategy or beginning to diversify its balance sheet.

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Figures per company announcement, Tuesday evening. Bitcoin holdings of 32,773 coins valued at approximately $2.7 billion at time of publication.