Strive’s Bold $150M Bitcoin Bet: Asset Manager Plans Major Debt Paydown and BTC Acquisition

In a significant move highlighting corporate Bitcoin adoption, asset manager Strive announced plans on Wednesday, May 28, 2025, to raise up to $150 million through a preferred stock offering, with proceeds strategically allocated to reduce corporate debt and acquire more Bitcoin. This decision underscores a growing trend where public companies leverage capital markets to strengthen their cryptocurrency reserves while optimizing their financial structure.

Strive’s $150 Million Strategic Financing Plan

Strive Asset Management, co-founded by former U.S. presidential candidate Vivek Ramaswamy, filed to sell shares of its Variable Rate Series A Perpetual Preferred Stock. The stock will trade under the ticker symbol SATA. The company explicitly stated the capital raise aims to achieve two primary objectives. First, it will pay down liabilities at its wholly-owned subsidiary, Semler Scientific. Second, any remaining funds will purchase Bitcoin and Bitcoin-related products.

This offering represents the latest in a series of capital raises for Strive. The firm announced a $750 million raise in May 2025 to establish “alpha-generating” Bitcoin strategies. Subsequently, it launched a $500 million stock sales program in December for additional BTC purchases. The current $150 million initiative appears more focused on balance sheet optimization alongside continued treasury expansion.

Simplifying the Corporate Balance Sheet

The capital raised, alongside existing cash, will target specific liabilities. A key target is repurchasing a portion of Semler Scientific’s 4.25% convertible senior notes due in 2030. Additionally, the funds will address outstanding borrowings under a master loan agreement with Coinbase Credit. Strive’s leadership frames this as a strategic shift to return to a “perpetual-preferred only amplification model.” This model aims to simplify the capital structure and potentially reduce future interest expenses.

Concurrently, Strive plans to negotiate private debt-for-equity swaps with certain holders of the Semler convertible notes. These holders could exchange their debt for the new SATA preferred shares. Importantly, these private exchanges would reduce the size of the public offering but would not generate new cash for Strive. This tactic allows the company to manage its debt profile directly with creditors.

Understanding the SATA Preferred Stock Terms

The financial instrument at the center of this raise carries specific terms for investors. The SATA preferred stock carries a starting annual dividend rate of 12.25%, paid monthly in cash. This rate will adjust over time based on prevailing market conditions and short-term interest rates. The shares are perpetual but include a redemption option for Strive, generally at $110 per share plus any accrued, unpaid dividends. Barclays and Cantor Fitzgerald are acting as joint book-running managers, with Clear Street serving as co-manager, indicating institutional backing for the deal.

Expanding a Major Bitcoin Treasury

Strive’s strategy is deeply intertwined with its identity as a Bitcoin treasury company. The firm is concurrently finalizing an all-stock acquisition of Semler Scientific, which received shareholder approval earlier this year. This acquisition is pivotal because it will add Semler’s substantial Bitcoin holdings to Strive’s balance sheet.

Upon completion of the transaction, Strive’s total Bitcoin holdings are projected to surge to 12,797.9 BTC. This positions Strive among the largest corporate holders of Bitcoin globally. The following table illustrates the projected growth:

This aggressive accumulation reflects a core thesis that Bitcoin serves as a strategic reserve asset and a long-term store of value for corporations.

Industry Context and Looming Challenges

Strive’s ambitious plan unfolds against a complex backdrop for digital asset treasury companies. Industry analysts project a period of consolidation and difficulty ahead. MoreMarkets CEO Altan Tutar has publicly warned that 2026 could witness widespread shutdowns within the sector. Falling cryptocurrency prices and declining share valuations may pressure business models reliant primarily on holding digital assets.

Tutar’s analysis suggests a tiered risk model. He expects altcoin-focused treasury firms to face failure first, followed by strategies tied to large-cap assets like Ethereum (ETH), Solana (SOL), and XRP (XRP). The core issue, according to experts, is an overcrowded sector. Many firms launched during Bitcoin’s bull market may struggle to sustain valuations above their net asset value without generating additional, non-speculative returns.

This context makes Strive’s dual focus on balance sheet strength and Bitcoin acquisition notable. By reducing debt, the company may improve its financial resilience ahead of a potential industry downturn. Its focus on Bitcoin, the largest and most established cryptocurrency, could be seen as a conservative stance within the crypto treasury space.

The Broader Trend of Corporate Bitcoin Adoption

Strive’s actions are part of a larger narrative. A related industry report suggests that one in four S&P 500 firms could hold Bitcoin on their balance sheets by 2030. Companies are increasingly viewing Bitcoin not just as a speculative investment, but as a treasury management tool—a non-correlated asset and a potential hedge against inflation and currency debasement. Strive, through its public raises and acquisitions, is positioning itself at the forefront of this institutional adoption curve.

Conclusion

Strive’s plan to raise $150 million represents a calculated financial maneuver with significant implications for the corporate Bitcoin landscape. The strategy balances immediate practical needs—paying down debt and simplifying the capital structure—with a long-term conviction in Bitcoin’s value. As the digital asset treasury sector braces for potential headwinds, Strive’s approach of fortifying its balance sheet while doubling down on primary cryptocurrency holdings may offer a template for resilience. The success of this $150 million raise and the subsequent integration of Semler Scientific’s Bitcoin treasury will be closely watched by investors and industry observers alike as a bellwether for corporate crypto strategy in 2025 and beyond.

FAQs

Q1: What is Strive Asset Management planning to do with the $150 million?
Strive plans to use the proceeds from its $150 million preferred stock offering for two main purposes: to pay down debt at its subsidiary Semler Scientific and to acquire additional Bitcoin for its corporate treasury.

Q2: Who founded Strive Asset Management?
Strive was co-founded in 2022 by Vivek Ramaswamy, a former U.S. presidential candidate and biotech entrepreneur, who has been a vocal advocate for certain financial and corporate governance philosophies.

Q3: How will Strive’s Bitcoin holdings change after its acquisition of Semler Scientific?
Following the all-stock acquisition of Semler Scientific, Strive’s total Bitcoin holdings are projected to increase from its current amount to approximately 12,797.9 BTC, combining both companies’ reserves.

Q4: What are the terms of the SATA preferred stock being offered?
The SATA preferred stock carries a starting 12.25% annual dividend paid monthly, is perpetual, and can be redeemed by Strive at $110 per share plus unpaid dividends. The dividend rate will adjust based on market conditions.

Q5: Why are experts concerned about digital asset treasury companies in 2026?
Industry analysts like MoreMarkets CEO Altan Tutar warn that falling crypto prices and share valuations could pressure business models reliant on holding digital assets, potentially leading to sector consolidation and failures, especially among altcoin-focused firms.