Strive's preferred equity blueprint for Strategy's $8 billion convertible debt overhang

2026-01-25 23:38:01

Source: CryptoNewsNet Original Title: Strive’s preferred equity blueprint for Strategy’s $8 billion convertible debt overhang Original Link: Strive (ASST), a bitcoin treasury and asset management company, is using perpetual preferred equity to retire convertible debt and restructure its balance sheet, a method that could offer a template for Strategy (MSTR) in the future.

On Thursday, the company priced a follow-on offering of its Variable Rate Series A Perpetual Preferred Stock SATA (SATA), at $90 per share. The transaction was upsized beyond the initially announced $150 million to allow for the issuance of up to 2.25 million SATA shares in aggregate, combining public issuance with privately negotiated debt exchanges.

Strive said it intends to use the net proceeds to pay down Semler Scientific’s 4.25% Convertible Senior Notes due 2030, which are guaranteed by Strive. The company expects to enter exchange agreements with certain noteholders representing $90 million in aggregate principal.

BTC-0,61%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.