Strive, the Bitcoin treasury company, closed its upsized IPO of SATS preferred stock and raised $630 million gross. The company has not said how much of the proceeds it will spend on Bitcoin. If it put everything into BTC, its holdings could pass Metaplanet's.
Strive raised $630 million gross when it closed its upsized initial public offering of SATS preferred stock on Oct. 20. However, the company has not specified how much of the proceeds it will use to buy Bitcoin (BTC).
How the offering was priced
Strive sold 7 million shares at $90 each. According to BitcoinTreasuries.net, the company estimated net proceeds of $608.15 million after underwriting discounts, commissions and expenses.
In an SEC filing, Strive said it intended to use the funds for general corporate purposes. Those include Bitcoin purchases, working capital, income-generating assets, capital expenditures, share repurchases and acquisitions.
A 15% dividend on the stated amount
SATS carry a 15% annual dividend on a $100 stated amount, equal to $15 per share annually if paid in full. Because the IPO price is $90, the stated dividend works out to 16.67% of the purchase price. Dividends are cumulative and payable when declared by Strive's board.
Payments are scheduled each business day beginning Nov. 9, subject to declaration. The first payment, if declared in full, will include accruals dating from the Oct. 20 closing.
What the proceeds could buy
At an illustrative Bitcoin price of $82,500, the $608.15 million in net proceeds could purchase approximately 7,372 BTC before fees. Full allocation to BTC would lift Strive's reported holdings from 36,818 BTC to roughly 44,190 BTC. That would potentially surpass Metaplanet's reported 44,000 BTC.
Chief risk officer Jeff Walton said the company has no debt or maturities and is focused on a single obligation: paying dividends.
Source: Cointelegraph
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