Strive Raises $630M in Upsized IPO, Plans Bitcoin Purchases

Details regarding how much of the raised funds will be allocated to Bitcoin purchases remain undisclosed by Strive.

The company sold 7 million shares priced at $90 each. BitcoinTreasuries.net estimated that net proceeds after underwriting fees, commissions, and expenses amounted to approximately $608.15 million. According to an SEC filing, Strive plans to use these funds for various corporate purposes, including buying Bitcoin, working capital, income-generating assets, capital expenditures, share buybacks, and acquisitions.

These SATS shares come with a 15% annual dividend based on a $100 par value, which translates to $15 per share annually if dividends are paid in full. The dividends are cumulative and subject to the company’s board approval. Given the $90 IPO price, this equates to an annual dividend yield of roughly 16.67% of the purchase price.

Assuming a Bitcoin price of $82,500, Strive’s net proceeds could buy about 7,372 BTC before fees. If the entire amount is invested in Bitcoin, the company’s BTC holdings would grow from 36,818 to around 44,190 BTC, potentially overtaking Metaplanet’s reported 44,000 BTC reserve.

Dividends on SATS shares are expected to be paid on each business day starting November 9, contingent on declarations. The initial dividend payment would cover accrued amounts from the October 20 closing date.

Jeff Walton, Chief Risk Officer at Strive, highlighted that the company has no debt or maturity obligations and remains focused solely on fulfilling its dividend payout commitment.

Strive’s substantial capital raise and dividend structure highlight its strategic efforts to grow Bitcoin holdings and deliver investor returns, positioning it as a noteworthy player in the crypto treasury sector.