Strive seeks $150M via perpetual preferred shares to repay debt and buy more Bitcoin
Asset manager Strive plans to raise up to $150 million by issuing variable-rate Series A perpetual preferred shares (ticker: SATA). Proceeds, together with existing cash and potential hedge unwind gains, will be used to repay liabilities of its subsidiary Semler Scientific — including repurchasing part of Semler’s 4.25% convertible notes due 2030 and paying down a loan under a Coinbase Credit facility. Any remaining funds may be used to add to Strive’s Bitcoin (BTC) holdings. Strive also intends to privately exchange SATA shares with some Semler convertible-note holders, which would reduce the public offering size without generating cash. The SATA shares carry an initial annual cash dividend of 12.25%, paid monthly, with a market-linked reset; Strive may redeem shares (typically at $110 plus unpaid dividends). Barclays and Cantor Fitzgerald are joint bookrunners; Clear Street is co-manager. The move follows Strive’s January all-stock acquisition of Semler Scientific, which brought Semler’s 5,048.1 BTC into Strive’s inventory and raised Strive’s total position to 12,797.9 BTC after the deal. Strive has previously raised billions for bitcoin-related investment initiatives this year. The fundraising occurs as crypto reserve companies face pressure in 2026 from falling crypto prices and valuation declines, prompting industry warnings that many reserve-focused firms could struggle without new revenue sources.
Neutral
The announcement is structurally credit- and balance-sheet focused rather than an immediate market-moving buy signal. Strive’s plan repays Semler liabilities and may free cash for additional BTC purchases — a bullish element — but the primary objective is deleveraging and shifting to a perpetual-preferred-only leverage structure. The offering includes a sizeable 12.25% yield and private debt-for-equity swaps that will reduce the public raise; such terms suggest financing stress or higher funding costs, which is a neutral-to-cautious sign. Historically, reserve firms’ announcements of new fundraising or BTC accumulation can provide modest bullish support to BTC over time if purchases materialize, but convertible exchanges and high-yield preferred issuance often reflect capital pressure that can weigh on confidence short-term. For traders: expect limited immediate price impact on BTC unless Strive publicly deploys substantial leftover proceeds into the market; watch for actual on-chain BTC transfers, redemption or repurchase notices, and any changes in leverage policy. Short-term: mixed — potential buying offset by signaling of funding stress. Long-term: slightly bullish if funds are deployed to accumulate BTC and reduce leverage, improving balance-sheet resilience.