Strive Retires $110M Debt, Raises $225M via Preferred Stock and Buys 334 BTC
Strive Inc. completed an upsized, oversubscribed Series A perpetual preferred offering (1,320,000 shares at $90) that raised $225 million (demand ~ $600M). Proceeds and an equity-for-debt exchange were used to retire about $110 million of legacy Semler Scientific liabilities — including converting roughly $90 million of Semler convertible notes into ~930,000 SATA preferred shares — and to fully repay a $20 million Coinbase credit facility. Strive bought 333.9 BTC at an average price near $89,851, bringing its unencumbered treasury to 13,131.82 BTC (as of Jan 28, 2026), making it a top-10 public corporate Bitcoin holder. Management said the moves shift the company toward a preferred-equity capital structure, reduce leverage, and produce a 37% amplification ratio (98% attributable to SATA) with a reported quarter-to-date Bitcoin yield of ~21%. Remaining Semler liabilities of about $10 million are expected to be retired by April 2026. For traders: the transaction signals corporate demand for BTC, removes encumbrances on Strive’s treasury (reducing sell-side risk), and modestly tightens available supply via a 334 BTC purchase funded through equity rather than additional debt. Short-term price impact is likely limited but supportive; monitor future corporate accumulation and any secondary market selling of preferred shares or converted equity.
Bullish
Corporate purchase of 333.9 BTC and removal of encumbrances on Strive’s treasury are supportive for Bitcoin’s price: they reduce available sell-side supply and signal continued institutional demand. The funding came via an equity-based preferred offering rather than additional debt, which lowers company leverage and reduces the risk that Strive would be forced to liquidate holdings to meet obligations. The amount purchased (≈334 BTC) is small relative to total market liquidity, so the immediate price impact is limited. However, the combination of balance-sheet improvement, confirmation of unencumbered holdings, and evidence of oversubscribed investor demand for crypto-linked equity is likely to be mildly bullish over the short-to-medium term. Watch for further corporate accumulation, timing of remaining debt retirements, and any large secondary-market movements in SATA or converted equity, which could introduce temporary volatility.