Strive Uses Preferred‑Stock Offering to Repay Most of Semler Debt and Add 334 BTC to Treasury
The Bitcoin‑focused corporate treasury firm announced that it has retired $110 million of the liabilities it inherited from the recent Semler Scientific acquisition, while also expanding its Bitcoin holdings by more than three hundred coins.
Deal recap
- Acquisition background – Strive completed its purchase of former Bitcoin‑treasury company Semler Scientific on 13 January, after a merger agreement was reached in September. The transaction left Strive with roughly $120 million of debt, including convertible notes and a $20 million loan from Coinbase.
- Financing vehicle – In early January the company launched a Variable Rate Series A Perpetual Preferred Stock (ticker SATA). Investor demand quickly outpaced expectations, prompting Strive to increase its target raise from $150 million to $225 million.
- Use of proceeds – The capital raised, together with existing cash reserves and anticipated gains from hedging unwind, was earmarked to (i) pay down inherited liabilities, (ii) fund further Bitcoin purchases, and (iii) support other Bitcoin‑related products.
Debt retirement and Bitcoin purchase
On Wednesday Strive confirmed that $110 million – 92 % of the Semler‑related debt – has been retired. The repayment package includes:
- Conversion of $90 million of Semler‑issued notes into SATA preferred shares.
- Full settlement of the $20 million Coinbase credit line.
With the Coinbase loan cleared, the company’s Bitcoin stash is now completely unencumbered. Strive also disclosed that it used part of the preferred‑stock proceeds to acquire 333.9 BTC at an average price of roughly $89,850 per coin. The addition lifts its total treasury to 13,132 BTC, valued at about $1.17 billion at current market rates.
The firm says the remaining $10 million of debt will be extinguished within the next four months.
Market reaction
Despite the balance‑sheet improvements, Strive’s common shares (ticker ASST) slipped 2.2 % to $0.80 in Wednesday trading. The stock remains more than 90 % below its peak of $10.46, a level it reached after initially announcing its Bitcoin strategy. The decline underscores the volatility that corporate Bitcoin treasury models can face, especially when market sentiment turns bearish.
Industry context
Corporate Bitcoin treasuries have become a mainstream institutional trend over the past two years, with over 190 publicly listed firms now holding an estimated 1.13 million BTC – roughly 5.4 % of the total supply. Michael Saylor’s Bitcoin Strategy continues to dominate, owning close to two‑thirds of the corporate‑held coins. However, many of those companies have seen their share prices deteriorate since the boom of 2024, prompting renewed scrutiny of the long‑term sustainability of such strategies.
Analysis
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Capital‑efficient financing – Strive’s preferred‑stock structure offers a way to raise long‑duration equity without adding leverage, an appealing feature for investors wary of traditional debt‑funded Bitcoin purchases. The rapid oversubscription suggests a market appetite for exposure to the asset class via corporate‑level vehicles.
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Debt reduction improves flexibility – By clearing the majority of the inherited debt, Strive reduces interest‑bearing obligations and eliminates encumbrances on its Bitcoin holdings. This positions the firm to act more nimbly on future market movements.
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Share price disconnect – The modest share‑price decline following the announcement indicates that the market may still be skeptical about the profitability of corporate Bitcoin treasuries, especially given the broader correction in crypto‑related equities.
- Benchmark for peers – Strive’s approach could serve as a template for other firms looking to build or expand Bitcoin treasuries while maintaining a clean balance sheet. The use of perpetual preferred securities to fund accumulation without increasing leverage is a novel financing model that may gain traction.
Key takeaways
- Debt cleared: $110 million (92 %) of the Semler‑related liabilities have been retired; the remaining $10 million is slated for repayment within four months.
- Bitcoin boost: 334 BTC purchased, bringing total holdings to 13,132 BTC (~$1.17 bn).
- Financing success: Preferred‑stock offering raised $225 million after demand surged, illustrating strong investor interest.
- Share price pressure: ASST stock fell 2.2 % and remains far below its peak, reflecting lingering market concerns.
- Industry signal: Strive’s clean‑up and financing model may influence how other corporations structure Bitcoin treasury strategies moving forward.
The information above is based on Strive’s public disclosures and market data as of 29 January 2026. Readers are encouraged to verify details independently.
Source: https://cointelegraph.com/news/strive-buys-bitcoin-shaves-debt-semler-scientific-deal?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
