TLDR
Strive (ASST) unveiled a $150 million Variable Rate Series A Perpetual Preferred Stock offering on January 21, 2026
Funds will repay Semler Scientific’s convertible debt, clear Coinbase Credit loans, and purchase bitcoin
Private note-for-stock exchanges are being negotiated separately that could reduce the public offering size
SATA preferred stock offers 12.25% annual dividends paid monthly with a 12-month dividend reserve at closing
Strive holds the 11th-largest bitcoin position among publicly traded companies
Strive launched a $150 million offering of its Variable Rate Series A Perpetual Preferred Stock on January 21. The move addresses debt obligations from the recent Semler Scientific acquisition while advancing the company’s bitcoin accumulation goals.
Strive, Inc., ASST
The capital raise serves multiple purposes. Proceeds will redeem or repurchase Semler Scientific’s 4.25% convertible senior notes. Strive will also pay down borrowings from a Coinbase Credit facility.
Bitcoin remains central to the strategy. The company ranks 11th among public companies for bitcoin holdings. The offering will fund additional bitcoin and bitcoin-related product purchases.
Strive aims to return to a perpetual-preferred-only capital structure. This model uses preferred equity instead of traditional debt to fund operations.
A separate negotiation is happening behind the scenes. Strive is working with certain convertible noteholders on private exchanges. These deals would swap existing notes for SATA stock.
The private exchanges won’t bring in cash. But they could shrink the size of the public offering. These transactions would be exempt from registration requirements.
Dividend Features Designed to Attract Investors
SATA stock carries a 12.25% annual dividend rate. Dividends are paid monthly and accumulate over time. The stock is valued at $100 for dividend calculations.
Management can lower the rate within defined limits. The company wants the stock to trade between $95 and $105 long-term. This range guides their dividend decisions.
Unpaid dividends compound monthly. If dividends go unpaid, the rate can climb to 20% annually. This protects preferred stockholders from missed payments.
The offering includes a 12-month dividend reserve funded at closing. This reserve ensures consistent dividend payments. It also helps keep the stock price stable within the target range.
Market Response and Analyst Views
SATA closed at $99.50 on Wednesday. Strive’s common stock gained 0.8% to reach 89 cents. The preferred shares trade near their $100 calculation value.
The analysis points to ongoing losses and cash burn as headwinds. Corporate actions like the merger and financing moves provide some offset.
The acquisition of Semler Scientific happened earlier this month through an all-stock deal. Now Strive is addressing the debt that came with that purchase. The preferred stock offering provides the capital to clean up the balance sheet.
Both Strive and investors have redemption and repurchase rights built into SATA. These features add flexibility for both sides. The variable rate structure allows adjustments based on market conditions while protecting dividend income.
