Strive, the Vivek Ramaswamy-backed asset manager turned Bitcoin powerhouse, is making bold moves to fortify its balance sheet and supercharge its cryptocurrency holdings. On January 16, 2026, the company announced plans to raise up to $150 million through a follow-on offering of its Variable Rate Series A Perpetual Preferred Stock, known as SATA stock. This strategic capital raise targets debt reduction, fresh Bitcoin acquisitions, and corporate growth, signaling Strive’s unwavering commitment to positioning Bitcoin as a cornerstone of its treasury strategy.
The Strategic Capital Raise: Details and Structure
At the heart of this initiative is a follow-on offering registered under the Securities Act of 1933, managed by joint book-runners Barclays and Cantor, with Clear Street as co-manager. The SATA stock carries a compelling 12.25% annualized dividend, paid monthly and structured as cumulative with compounding interest if missed—potentially rising to 20% per year. Strive has built in flexibility to adjust the dividend rate within limits, aiming to keep the stock trading in a tight $95 to $105 range per share, with a stated value of $100.
Proceeds from the offering, combined with existing cash and potential funds from terminating derivative contracts, will primarily repay outstanding debt. This includes redeeming or repurchasing the 4.25% Convertible Senior Notes due 2030 issued by Strive’s newly acquired subsidiary, Semler Scientific, Inc. These notes, guaranteed by Strive, represent senior unsecured obligations with semiannual interest payments. To accelerate deleveraging, Strive is negotiating private debt-for-equity swaps, offering certain noteholders SATA stock in exchange for their holdings. If participation is strong, the public offering size could shrink accordingly, optimizing the capital structure without excessive dilution.
Additionally, funds will target Semler Scientific’s borrowings under loan agreements with Coinbase Credit Inc., further slashing interest burdens. The remainder supports Bitcoin purchases and “Bitcoin-related products,” alongside general corporate purposes—a clear nod to Strive’s aggressive expansion in digital assets.
Recent Milestone: Acquiring Semler Scientific
This capital raise follows hot on the heels of a transformative acquisition. Shareholders recently approved Strive’s purchase of Semler Scientific in an all-stock transaction valued at approximately $1.42 billion. The deal, now completed, integrates Semler’s operations and catapults Strive’s Bitcoin treasury to new heights.
Semler, a leader in medical diagnostics with its FDA-cleared QuantaFlo product for arterial blood flow testing, had already embraced Bitcoin as its primary treasury reserve asset—the second U.S. public company to do so. The acquisition adds over 5,000 BTC to Strive’s balance sheet. Prior to the deal, Strive held nearly 7,750 BTC, valued at around $697 million at recent market prices (with Bitcoin dipping below $88,000 in early 2026). Post-acquisition, Strive’s total surges to approximately 12,798 BTC, vaulting it to the 11th largest corporate Bitcoin holder globally—surpassing giants like Tesla and Trump Media & Technology Group.
This move diversifies Strive beyond pure asset management into healthcare, blending Semler’s high-margin operations (gross profits at 88%) with Strive’s Bitcoin-centric vision. Semler’s strong liquidity (current ratio of 3.14) and minimal pre-existing debt made it an ideal fit, while its history of Bitcoin accumulation aligns perfectly with Strive’s ethos.
Bitcoin as Corporate Treasury: Strive’s Core Philosophy
Strive’s actions embody a burgeoning trend: corporations treating Bitcoin not as a speculative bet, but as a strategic reserve asset. Backed by entrepreneur and former presidential candidate Vivek Ramaswamy, Strive has positioned itself as a pioneer in this space. The company’s mantra—increasing Bitcoin per share over the long term—drives decisions from acquisitions to capital raises.
By layering on SATA preferred stock, Strive accesses patient, high-yield capital without the immediate repayment pressures of traditional debt. The variable-rate structure and redemption options provide agility in volatile markets. This contrasts with Semler’s convertible notes, which carried conversion premiums (initially 25-75% over reference prices) and dilution risks mitigated by capped call transactions.
- Debt Reduction: Targets legacy convertible notes and Coinbase loans, lowering interest expenses and leverage.
- Bitcoin Expansion: Builds on 12,798 BTC base, aiming for greater market dominance.
- Operational Growth: Funds integration of Semler’s $58.94 million annual revenue stream and diagnostic innovations.
- Investor Appeal: 12.25% dividends attract yield-hungry investors in a high-interest environment.
Market reaction was mixed: Strive shares dipped 2.7% post-announcement, with some investors questioning capital allocation amid Bitcoin’s 2026 lows. Yet, analysts view this as a savvy play, enhancing financial stability while amplifying crypto exposure.
Risks and Market Context
No strategy is without hurdles. Strive’s heavy Bitcoin bet exposes it to cryptocurrency volatility—prices have fluctuated wildly, hitting new 2026 lows below $88,000. The SATA stock’s dividend adjustments could spark scrutiny if perceived as manipulative, and debt swaps hinge on noteholder buy-in. Regulatory landscapes for crypto treasuries remain fluid, with ongoing SEC oversight of offerings and conversions.
Moreover, corporate Bitcoin adoption faces skepticism. While Strive joins ranks with Strategy and Twenty One Capital as active accumulators, markets demand proof of value creation. Semler’s past notes offerings (upsized to $100 million) highlighted dilution concerns, now addressed through Strive’s holistic approach. Success will hinge on executing the raise amid market conditions and sustaining Bitcoin’s long-term appreciation.
Implications for Investors and the Crypto Ecosystem
Strive’s maneuvers underscore a seismic shift in corporate finance. By deleveraging and stacking sats (Bitcoin slang for accumulating), it models how public companies can thrive in a Bitcoin-standard world. Investors eyeing high-yield preferreds or Bitcoin proxies will watch closely: SATA’s structure offers income with upside from crypto growth, while common shares benefit from treasury expansion.
For the broader ecosystem, Strive’s rise to top-11 status amplifies Bitcoin’s legitimacy. As more firms follow—repurposing balance sheets for digital gold—expect heightened scrutiny on capital efficiency. Ramaswamy’s influence adds political heft, potentially swaying policy debates on strategic reserves.
In a landscape where traditional assets falter, Strive’s playbook—acquire Bitcoin-rich firms, raise smart capital, repeat—could redefine treasury management. The $150 million raise isn’t just fundraising; it’s fuel for ascent.
Ultimately, Strive’s strategy distills to a simple, powerful takeaway: in an era of fiat uncertainty, bold bets on Bitcoin yield resilience and growth. If executed flawlessly, this could propel Strive from niche player to corporate titan, proving that debt discipline and digital asset conviction make an unstoppable combination.
