ASST Stock Jumps 6% as Strive Raises $630M in Preferred Stock IPO to Buy More Bitcoin

ASST stock rose nearly 6% on Tuesday as Bitcoin treasury company Strive closed its $630 million preferred stock IPO. The company confirmed the listing of its new shares on the Nasdaq, noting that the proceeds would be used for additional Bitcoin acquisitions and other corporate uses.

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Strive Closes $630M SATS Preferred Stock Offering

Strive announced the closing of its upsized offering of seven million Series A Perpetual SATS preferred shares. The shares were sold at $90 per share for $630 million, excluding fees and expenses of the underwriters.

The new preferred stock began trading on Nasdaq under the ticker SATS on October 20. Unlike Strive’s common ASST shares, SATS carries a fixed annual dividend rate based on its stated value.

The offering is part of an earlier hike in Strive’s preferred stock IPO, in which the company raised the number of shares from five million to seven million before closing the IPO.

According to Strive Chairman and CEO Matt Cole, the offering is part of the company’s long-term Bitcoin investment strategy.

“The successful, upsized IPO of SATS marks a critical milestone in our strategy to maximize long-term total returns for our common equity investors,” Cole said.

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SATS Stock Offers 15% Annual Dividends With Daily Payments

SATS carries a fixed annual dividend rate of 15% on its $100 stated value. With full dividend payments, that equates to a 16.7% annualized yield at a $90 offer price.

Strive will start paying out business-day dividends on November 9, which includes any dividends accrued since October 20. However, payments are still subject to the Board’s declarations and the availability of legally distributable funds.

In addition, the company has a currently outstanding preferred security (SATA), which receives priority over SATS in the distribution of dividends and liquidation claims. The two types of preferred securities have a higher priority than Strive’s common ASST shares, creating varying positions in its capital structure.

Other Bitcoin treasury companies are mulling over similar dividend deals, such as Strategy’s proposed daily STRC dividends, which still need to be approved by the shareholders on Oct. 28.

ASST Stock Gains as Bitcoin Treasury Reaches 36,818 BTC

ASST stock climbed approximately 5.4% to $26.92 during Tuesday’s trading session, after reaching an intraday high near $27.27. The stock had closed Monday at $25.54, marking a 6.02% gain before the latest rally.

The rally follows Strive’s latest Bitcoin treasury purchase, which added 1,223 BTC for approximately $100 million. The purchase increased its holdings to 36,818 BTC after several acquisitions earlier in October.

Strive acquired 4,045 Bitcoin between October 12 and October 16, expanding its exposure ahead of the SATS offering’s settlement. The company may use the new capital for additional Bitcoin purchases, working capital, and other corporate activities.

However, the offering does not guarantee further Bitcoin acquisitions, and dividend obligations remain attached to the new preferred shares.