NEW YORK, January 22, 2026
Strive’s Debt Restructuring Signals Potential Path for Strategy
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Bitcoin treasury Strive is swapping debt for perpetual preferred stock, a move analysts suggest could offer a blueprint for Strategy, which holds billions in convertible notes.
- Strive priced a follow-on offering of its Variable rate Series A Perpetual Preferred Stock (SATA) at $90 per share on Thursday.
- The company intends to use the proceeds to pay down Semler Scientific’s convertible notes and fund additional bitcoin purchases.
- Converting fixed-maturity debt into perpetual preferreds improves leverage metrics and offers greater financial adaptability.
- Strategy, with $8.3 billion in outstanding convertible notes, could possibly adopt a similar strategy.
Strive (ASST) is taking a novel approach to managing its debt, one that could resonate with other companies heavily invested in bitcoin. The company’s recent move to utilize perpetual preferred equity to retire convertible debt is drawing attention, particularly regarding its potential applicability to Strategy (MSTR). The financial maneuver offers a potentially smoother path forward as both companies navigate the volatile cryptocurrency landscape.
Preferred Stock: A New Avenue for Bitcoin Firms
On Thursday, Strive priced a follow-on offering of its Variable Rate Series A Perpetual Preferred Stock SATA, at $90 per share. The transaction was upsized from an initially announced $150 million to allow for the issuance of up to 2.25 million SATA shares, combining public issuance with privately negotiated debt exchanges. This strategic move allows Strive to address its financial obligations while potentially bolstering its bitcoin holdings.
Strive plans to use the net proceeds to pay down Semler Scientific’s 4.25% Convertible senior Notes due 2030, which are guaranteed by Strive. The company anticipates entering exchange agreements with noteholders representing $90 million in aggregate principal, exchanging approximately 930,000 newly issued SATA shares for the convertibles. Remaining proceeds, alongside existing cash and potential gains from terminating capped call transactions, are earmarked for redeeming or repurchasing remaining Semler convertibles, repaying borrowings under Semler Scientific’s Coinbase credit facility, and acquiring more bitcoin.
Why Perpetual Preferreds?
Instead of traditional refinancing, Strive is converting fixed-maturity obligations into perpetual preferreds. SATA carries a variable dividend currently set at 12.25% and has no maturity or conversion feature. This structure offers several advantages: preferred shares are classified as equity, improving reported leverage metrics and providing greater financial flexibility. Bondholders, in turn, receive a higher-yielding, perpetual, and fully liquid instrument with seniority over common stock, effectively trading conversion options for a more secure return.
Implications for Strategy
This approach could be particularly relevant for Strategy, which currently holds roughly $8.3 billion in outstanding convertible notes. Recently, Strategy’s perpetual preferred securities have surpassed convertibles in notional value. The largest portion of these notes, a $3 billion tranche, has a put date of June 2, 2028, and a conversion price around $672.40 – approximately 300% above Strategy’s current share price near $160.
Utilizing preferred equity to retire or exchange this debt could provide executive chairman Michael saylor with an additional tool to mitigate future maturity risks. The move woudl allow Strategy to proactively manage its financial obligations and potentially free up capital for further bitcoin acquisitions.
