Crypto: Strive Plans To Raise $150m To Pay Down Debt And Buy More Bitcoin

The company also plans private debt-for-equity swaps for some holders of the Semler convertible notes that may shrink its offering size.

Strive, an asset manager co-founded by former US presidential candidate Vivek Ramaswamy in 2022, plans to raise as much as $150 million through an offering of preferred stock, with proceeds earmarked for debt repayment and Bitcoin purchases.

Strive said it plans to sell shares of its Variable Rate Series A Perpetual Preferred Stock, trading under the ticker SATA, according to a Wednesday announcement.

The company said the capital raised, alongside existing cash and potential proceeds from unwinding hedging transactions, would be used to pay down liabilities at its wholly owned subsidiary, Semler Scientific. That includes repurchasing a portion of Semler’s 4.25% convertible senior notes due in 2030, as well as outstanding borrowings under a master loan agreement with Coinbase Credit.

Strive said the move is intended to simplify its balance sheet and return to a “perpetual-preferred only amplification model.” Any remaining funds may be allocated toward acquiring Bitcoin (BTC) and Bitcoin-related products.

The Bitcoin treasury company also revealed plans to negotiate private exchanges with certain holders of the Semler convertible notes, allowing them to swap debt for SATA preferred shares. These exchanges would reduce the size of the public offering but would not generate cash for the company.

Related: Strategy Buys $2.13B In Bitcoin, Holdings Surpass 700K

The SATA preferred stock carries a starting annual dividend rate of 12.25%, paid monthly in cash, with the rate adjusting over time based on market conditions and short-term interest rates. The preferred shares are perpetual but can be redeemed at Strive’s option, generally at $110 per share plus any unpaid dividends.

Barclays and Cantor Fitzgerald are acting as joint book-running managers for the offering, with Clear Street serving as co-manager.

Earlier in January, Strive announced an all-stock deal to acquire Semler Scientific. The company said it has secured shareholder approval for the acquisition, which would add Semler Scientific’s 5,048.1 Bitcoin to Strive’s existing treasury. Following the transaction, Strive's total Bitcoin holdings will increase to 12,797.9 BTC.

Source: CoinTelegraph