Strive (ASST.US) ATM Raises $1 Billion: The Liquidity Game Behind 15% Perpetual Shares

According to Woofun AI, Strive, Inc. (ASST.US) submitted a 424B5 prospectus supplement on October 26, officially disclosing its intention to issue 15.00% Series A perpetual SATS (SATS.US) preferred shares totaling up to $1 billion through the Market Price Issuance (ATM) mechanism, marking the rapid commencement of large-scale equity financing after the IPO to optimize the capital structure.

Seven organizations, Cantor Fitzgerald, Barclays (BCS.US), Clear Street, StoneX (SNEX.US), B. Riley, Maxim Group, and H.C. Wainwright, jointly signed sales agreement agents for this financing. The maximum agency commission was set at 2.0% of the total amount raised.

According to data compiled by Woofun AI, the preferred stock was listed on the NASDAQ global market. The closing price on October 23 was $94.88, less than the initial liquidation priority of $100. Currently, 7 million shares have been issued, and the terms of the additional shares are completely consistent with the issued shares. Preferred shares are calculated at a face value of $100, and the annualized cumulative dividend rate is 15%; to ensure payment, the company established a dividend reserve at the time of the IPO settlement on October 20, which was deposited at $22.50 per share to cover the previous 18 months of dividend payments. If the number of tradable shares falls below 25% of the total amount of initial issuance and subsequent additional issues, or if a “tax incident” occurs, the company has the right to fully redeem them; if a “fundamental change” occurs, the holder has the right to repurchase them at face value plus accrued unpaid dividends.

Structurally, the annual dividend rate of up to 15% is significantly above the current market average, reflecting the premium cost Strive, Inc. (ASST.US) pays to obtain instant liquidity. Although dividend reserves cover payment obligations for the first 18 months, perpetual bond redemption triggers (such as less than 25% of tradable shares) will limit the company's flexibility to expand its share capital for a long time. This is another typical case of capital operation where time is exchanged for space, following the recent financing of a number of Web3 related listed companies through high-interest preferred shares.