Strive, the asset management company co-founded by billionaire Ohio gubernatorial candidate Vivek Ramaswamy, launched a $500 million preferred stock offering to acquire more Bitcoin.
According to the Tuesday announcement, Strive has signed a sales agreement with Cantor Fitzgerald, Barclays, and Clear Street to offer up to $500 million in shares of its Variable Rate Series A Perpetual Preferred stock (SATA).
The Dallas-based firm intends to use the net proceeds from the sale for “general corporate purposes, including, among other things, the acquisition of Bitcoin and Bitcoin-related products, and for working capital.”
Using the ATM equity offering, Strive and its agents gain the flexibility to sell shares directly to the market at prevailing prices over a period, instead of issuing them at a fixed price in one big transaction.
The move represents another popular publicly traded company leveraging capital markets to stockpile Bitcoin, a strategy pioneered by Michael Saylor’s Strategy (formerly known as MicroStrategy).
Strive Holds The 14th Biggest Stash Of Bitcoin
Strive adopted Bitcoin as a treasury reserve asset in early May, while merging with Asset Entities.
Before that, the asset management firm pushed GameStop to start adding Bitcoin to its balance sheet, at one point proposing that the gaming company convert all of its cash into the premier cryptocurrency. GameStop confirmed its plans in March to start accumulating Bitcoin and raised $1.5 billion towards this strategy.
Strive is currently the 14th-largest corporate Bitcoin holder, with 7,525 BTC worth roughly $694 million at current market prices, according to Bitcointreasuries.
In September, Strive agreed to acquire Semler Scientific at a $1.3 billion valuation in a move that positioned the combined entity as one of the largest corporate holders of BTC.
Meanwhile, BTC has risen around 3.4% over the last 24 hours to a current price of $92,911, ahead of one of the most consequential Federal Reserve decisions of the year. The top crypto is still 26.5% away from its Oct.6 all-time high mark of $126,080, per data from CoinGecko.
Source: https://zycrypto.com/vivek-ramaswamys-strive-raises-500-million-to-fuel-bitcoin-treasury-purchases/
