Ramaswamy-Backed Strive Plans $150M Preferred Stock to Buy Bitcoin

Introduction (50–100 words)
Strive, the Bitcoin-focused asset manager co-founded by Vivek Ramaswamy, is exploring a financing move aimed at shoring up its balance sheet while expanding its Bitcoin treasury. The plan involves selling Variable Rate Series A Perpetual Preferred Stock, trading under SATA, in a move that could raise up to $150 million. Proceeds are earmarked to reduce debt at its Semler Scientific subsidiary and to fund further Bitcoin purchases, signaling a continued commitment to a Bitcoin-driven treasury strategy even as the broader market faces headwinds.

Key Takeaways

• Strive intends to raise as much as $150 million through the sale of SATA perpetual preferred stock.
• Funds would repay Semler Scientific liabilities and support Bitcoin acquisitions, aligning with Strive’s Bitcoin treasury strategy.
• The company also eyes private debt-for-equity exchanges to shrink the public offering size without cash inflows.
• Past capital raises underscore a persistent push to expand Bitcoin holdings amid a challenging macro backdrop for crypto treasuries.

Tickers Mentioned

Tickers mentioned: SATA, BTC

Sentiment

Sentiment: Neutral

Price impact

Price impact: Neutral. The offering is a refinancing move that could affect liquidity and debt levels but does not immediately alter market prices.

Trading idea (Not Financial Advice)

Trading idea (Not Financial Advice): Hold. The transaction describes a financing step rather than an immediate trading catalyst, with execution risk and regulatory considerations ahead.

Market context

Market context: The strategy unfolds as digital-asset treasury firms grapple with a tougher 2026 environment, marked by softer crypto prices and scrutiny over valuation dynamics.

Rewritten article body (550–850 words)
Strive, the asset manager co-founded in 2022 by venture-backed entrepreneur Vivek Ramaswamy, is pursuing a financing move that could raise up to $150 million through the issuance of its Variable Rate Series A Perpetual Preferred Stock, trading under SATA. The company disclosed plans for the follow-on offering in a Wednesday press update, outlining how the proceeds would be deployed to streamline its balance sheet and accelerate its Bitcoin treasury program. The funds, combined with existing cash and potential wind-down proceeds from hedging positions, would be directed toward reducing liabilities at its wholly owned Semler Scientific, a medical device firm that operates as Strive’s subsidiary.

Key elements of the plan include repurchasing a portion of Semler’s 4.25% convertible senior notes due in 2030 and addressing borrowings under a master loan agreement with Coinbase Credit. By targeting these liabilities, Strive aims to simplify its capital structure and pivot back toward a model centered on perpetual preferred stock. Any residual funds could be allocated to acquiring Bitcoin and related investment products, reinforcing the company’s commitment to growing its digital-asset treasury.

As part of the capital-structure optimization, Strive signaled intentions to negotiate private exchanges with certain holders of Semler convertible notes, offering them the option to swap debt for SATA preferred shares. While these exchanges would shrink the size of the public offering, they would not generate cash inflows for the company, effectively converting debt into equity to strengthen liquidity and reduce funding needs.

The SATA preferred stock comes with a starting annual dividend rate of 12.25%, payable monthly in cash. The rate is designed to adjust over time in response to market conditions and short-term interest rates. The shares are perpetual but can be redeemed by Strive at its option, typically at $110 per share plus any accrued dividends. The structure provides a predictable cash flow for the preferreds while giving Strive flexibility to manage capital in a dynamic market environment.

Barclays and Cantor Fitzgerald are handling the offering as joint book-running managers, with Clear Street serving as co-manager. The involvement of established investment banks underscores the seriousness of Strive’s capital-raise ambitions and the potential for a significant shift in its liability profile if the deal proceeds as planned.

The transaction follows a broader sequence of strategic moves. Earlier this year, Strive announced an all-stock acquisition of Semler Scientific, a deal that gained shareholder approval and would add Semler’s Bitcoin hoard to Strive’s treasury. If the acquisition closes as planned, Strive’s Bitcoin holdings would rise noticeably, bolstering its liquidity and providing additional ballast for its Bitcoin strategy. This alignment between equity-based financing and a growing Bitcoin treasury reflects Strive’s ongoing emphasis on leveraging crypto assets to generate alpha, a theme it signaled in prior fundraising rounds and investment initiatives.

Strive has pursued multiple capital-raising efforts in recent years to support its Bitcoin-focused strategy. In May 2025, the company disclosed a $750 million plan intended to establish “alpha-generating” Bitcoin-related purchases, followed by another $500 million stock-sales program in December to fund additional BTC acquisitions. These actions illustrate a persistent push to scale its Bitcoin holdings as a core component of its asset-management thesis, even as the broader crypto market contends with volatility and regulatory scrutiny.

Industry observers worry that the 2026 landscape for crypto treasury firms remains precarious. MoreMarkets CEO Altan Tutar has warned of potential industry-wide shakeouts as falling crypto prices and eroding share valuations pressure business models reliant on holding digital assets. He predicts that altcoin-focused treasuries could be the first to falter, followed by larger, high-profile strategies tied to assets such as Ethereum, Solana, and XRP. The sentiment is a reminder that while Strive’s Bitcoin-centric approach offers a distinct growth path, the sector as a whole faces a demanding macro environment that could test even well-capitalized treasuries.

In this context, Strive’s latest offering represents both a tactical refinement of its financing approach and a reaffirmation of its long-term Bitcoin strategy. The balance between debt reduction and asset accumulation will be watched closely by investors and industry watchers as the company navigates a market environment that remains uncertain, yet one where a disciplined Bitcoin treasury could prove a differentiator for the firm’s value proposition.