Strive’s $630M SATS IPO lands—and the Bitcoin-buying pencil is still sharp

Struve, the Bitcoin treasury company led by chairman and CEO Matt Cole, closed its upsized initial public offering of SATS preferred stock on Oct. 20, raising $630 million gross. The company sold seven million shares at $90 each and estimated net proceeds of $608.15 million after underwriting discounts, commissions and expenses, according to BitcoinTreasuries.net.

The new preferred stock began trading on Nasdaq under the ticker SATS on October 20. SATS carries a fixed annual dividend rate of 15% on its $100 stated value, equivalent to $15 per share annually if paid in full. Dividends are cumulative and payable when declared by Strive’s board, with scheduled business-day payments beginning Nov. 9. The first payment, if declared in full, will include accruals dating from the Oct. 20 closing.

Strive has not specified how much of the proceeds it will use to buy Bitcoin ($BTC). In an SEC filing, Strive said it intended to use the funds for general corporate purposes, including Bitcoin purchases, working capital, income-generating assets, capital expenditures, share repurchases and acquisitions.

At an illustrative Bitcoin price of $82,500, Strive’s estimated $608.15 million in net proceeds could purchase approximately 7,372 BTC before fees. If fully allocated to BTC, the purchase would increase Strive’s reported holdings from 36,818 BTC to roughly 44,190 BTC, potentially surpassing Metaplanet’s reported 44,000 BTC.

“The successful, upsized IPO of SATS marks a critical milestone in our strategy to maximize long-term total returns for our common equity investors,” Cole said. Strive chief risk officer Jeff Walton said the company has no debt or maturities and is focused on a single obligation: paying dividends.