🏦 Strive just raised $630 million by promising investors 15% a year. To buy Bitcoin? Maybe. Let’s look at how it works.
📌 The facts
• Oct. 20: Strive (Nasdaq: ASST) completes its IPO of “SATS” preferred shares
• 7 million shares sold at $90 each, for about $630 million gross (offering upsized by 2 million shares)
• Dividend: 15% per year on a value of $100 per share, with no end date (perpetual)
• Strive already held 36 818
$BTC as of Oct. 16, including 4,045 bought from Oct. 12 to 16 at an average of about $82,803
• Bitcoin is one possible use of the proceeds… but no purchase amount or timeline has been announced
🧠 How it works
A preferred share is somewhere between a stock and a loan: investors rank ahead of common shareholders when it comes to receiving a fixed income. Here: $15 per year per share, purchased for $90. The buyer’s actual yield is about 16.7%. For Strive, that means about $105 million in dividends to pay every year, whether Bitcoin goes up or down. The company has set aside $22.50 per share, equivalent to 18 months of dividends.
👤 Adama (a fictional character) sells phone credit in Bobo-Dioulasso. If he borrows at 15% to stock up on top-ups, he needs to sell them faster than his costs rise. Same idea here, on a much bigger scale.
⚖️ The nuance
• 15% is very expensive: it shows the risk is high
• If BTC stagnates for a long time, paying these dividends becomes a burden
• More corporate BTC purchases mean more demand, but also more forced sellers in a crisis
✅ Would you rather earn a fixed 15%… or hold Bitcoin directly? 👇
Not financial advice. DYOR.
Sources: Strive (Oct. 15 press release), SEC filings, Cointelegraph, StockTitan.
#Bitcoin #Strive #CryptoNews