Strive raises 630 M$ with a 15% dividend to buy Bitcoin: what this reveals
On October 15, Strive (ASST) priced its upsized IPO of SATS, a perpetual preferred stock: 7 million shares at $90 each, for 630 M$ before fees and a nominal value of 700 M$ (BitcoinTreasuries).
The terms
→ 15% annual dividend on a nominal value of $100, or 15 $ per share
→ Issue price of $90, giving an effective yield of 16.7%
→ Cumulative dividend, paid every business day, subject to board approval and available funds
→ Perpetual stock: no redemption date
With 630 M$ and Bitcoin at around $82,000, Strive could buy approximately 7,700 BTC before fees. It held 35,595 BTC as of October 14, making it the fourth-largest publicly traded Bitcoin company.
For comparison: in April, its other floating-rate preferred stock, SATA, had a rate of 13% (April 15 8-K).
My analysis: a 16.7% yield is the price investors demand to fund a Bitcoin treasury. For the model to hold up, Bitcoin or other income must cover this cost over the long term. I haven’t read the entire prospectus. This is a hypothesis, not a forecast.
This is not investment advice.
For you, is a 16.7% dividend a sign of market confidence or a sign of risk? #Bitcoin❗
On October 15, Strive (ASST) priced its upsized IPO of SATS, a perpetual preferred stock: 7 million shares at $90 each, for 630 M$ before fees and a nominal value of 700 M$ (BitcoinTreasuries).
The terms
→ 15% annual dividend on a nominal value of $100, or 15 $ per share
→ Issue price of $90, giving an effective yield of 16.7%
→ Cumulative dividend, paid every business day, subject to board approval and available funds
→ Perpetual stock: no redemption date
With 630 M$ and Bitcoin at around $82,000, Strive could buy approximately 7,700 BTC before fees. It held 35,595 BTC as of October 14, making it the fourth-largest publicly traded Bitcoin company.
For comparison: in April, its other floating-rate preferred stock, SATA, had a rate of 13% (April 15 8-K).
My analysis: a 16.7% yield is the price investors demand to fund a Bitcoin treasury. For the model to hold up, Bitcoin or other income must cover this cost over the long term. I haven’t read the entire prospectus. This is a hypothesis, not a forecast.
This is not investment advice.
For you, is a 16.7% dividend a sign of market confidence or a sign of risk? #Bitcoin❗