Strive ($ASST) Plans $150M Follow-On Offering To Buy Bitcoin

"The offering is registered under the Securities Act of 1933 and marks Strive's latest move to expand its bitcoin holdings while addressing outstanding debt. Strive plans to use the proceeds from the offering, along with cash on hand and potentially funds from terminating certain derivative contracts tied to convertible debt, to repurchase or redeem all or a portion of the 4.25% Convertible Senior Notes due 2030 issued by its subsidiary Semler Scientific, Inc."

"SATA Stock is structured as a variable-rate, cumulative dividend security with a stated value of $100 per share. Dividends are currently set at an annualized rate of 12.25%, payable monthly, though Strive reserves the right to adjust the rate within certain limits. If a dividend is missed, it accrues additional compounded interest, which can rise up to 20% per year. The company intends to manage the dividend rate to help the stock trade within a target range of $95 to $105 per share."

"The company may also use funds to pay down Semler Scientific's borrowings under its loan agreements with Coinbase Credit Inc., acquire additional bitcoin and related products, and support general corporate needs. In addition, Strive is negotiating with some holders of the Semler Convertible Notes to potentially exchange their notes for shares of SATA Stock. SATA Stock is structured as a variable-rate, cumulative dividend security with a stated value of $100 per share."

Strive intends to raise up to $150 million through a follow-on offering of its Variable Rate Series A Perpetual Preferred Stock (SATA Stock), subject to market conditions. The offering is registered under the Securities Act of 1933. Proceeds, cash on hand and potential funds from terminating certain derivative contracts tied to convertible debt may be used to repurchase or redeem some or all of the 4.25% Convertible Senior Notes due 2030 issued by subsidiary Semler Scientific, Inc. The company may also use funds to pay down Semler borrowings with Coinbase Credit, acquire additional bitcoin and related products, and meet general corporate needs. Strive is negotiating exchanges of Semler Notes for SATA Stock with some holders. SATA Stock carries cumulative variable dividends and redemption rights.

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