TLDR
- Strive retired 92% of debt from its Semler Scientific acquisition, paying off $110 million including $90 million in convertible notes and a $20 million Coinbase loan
- The company raised $225 million through preferred stock offering after seeing $600 million in demand, upsizing from initial $150 million target
- Strive purchased 334 Bitcoin at average price of $89,851, bringing total holdings to 13,132 BTC worth $1.17 billion
- The company now ranks among top 10 corporate Bitcoin holders with fully unencumbered holdings and plans to eliminate remaining $10 million debt in four months
- ASST shares fell 2.23% to $0.80 despite improvements, down 92.4% from $10.46 peak since announcing Bitcoin strategy
Strive completed a preferred stock offering that raised $225 million and used the proceeds to pay down debt while adding to its Bitcoin holdings.
The Bitcoin treasury company announced Wednesday it retired $110 million of the debt it took on from acquiring Semler Scientific earlier this month. This represents 92% of the inherited liabilities.
The debt reduction included $90 million in convertible notes that were exchanged for shares of the Variable Rate Series A Perpetual Preferred Stock. The stock trades under the ticker “SATA.”
Strive also paid off a $20 million credit facility from Coinbase in full. With this loan eliminated, the company’s Bitcoin holdings are now completely unencumbered.
The Vivek Ramaswamy-backed firm finalized its acquisition of Semler Scientific on January 13. The merger agreement was first reached in September 2024.
Strive originally targeted $150 million for the preferred stock offering. Demand reached $600 million, prompting the company to upsize the raise to $225 million.
Strong Demand Fuels Bitcoin Purchase
The preferred shares function as long-duration equity financing. This structure allows Strive to fund Bitcoin purchases without adding leverage to its balance sheet.
Following the offering’s close, Strive bought 333.9 Bitcoin at an average price of $89,851 per coin. The purchase brings the company’s total holdings to 13,132 BTC.
At current prices, the Bitcoin stash is worth approximately $1.17 billion. This positions Strive among the top 10 corporate Bitcoin holders globally.
The company reported a Bitcoin yield of 21.2% quarter-to-date. This metric tracks the percentage growth of Bitcoin exposure per common share over time.
Strive plans to eliminate the remaining $10 million of debt within the next four months. The company previously stated it would use proceeds from the stock offering, existing cash, and potential funds from unwinding hedging positions to reduce liabilities.
Market Response Remains Negative
ASST shares dropped 2.23% on Wednesday to $0.80. The decline came despite the debt reduction and Bitcoin acquisition.
The stock is now down 92.4% from its peak of $10.46. That peak occurred after Strive first announced its Bitcoin treasury strategy.
Over 190 publicly traded companies now hold Bitcoin on their balance sheets. These firms collectively own about 1.134 million BTC, representing roughly 5.4% of Bitcoin’s total supply.
Michael Saylor’s Strategy owns nearly 63% of all corporate-held Bitcoin. The company continues making Bitcoin purchases even as funding has dried up in recent months.
Corporate Bitcoin treasuries became a popular strategy throughout 2024 and early 2025. Many of these companies saw share prices fall in the latter half of last year as investors questioned the sustainability of the model.
The preferred stock offering closed with Strive holding fully unencumbered Bitcoin assets valued at $1.17 billion and $10 million in remaining debt scheduled for retirement by May 2026.
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