Strive to issue perpetual preferred stock to improve finances

U.S. asset manager Strive is working to improve its financial structure by replacing convertible bonds with perpetual preferred stock, Coindesk reported. The firm has issued floating-rate Series A perpetual preferred stock (SATA) at $90 per share, with plans to expand the total issuance to up to 2.25 million shares. This new structure classifies the stock as equity rather than debt, improving leverage metrics and increasing financial flexibility. In exchange for giving up their conversion option, creditors receive high dividends, a perpetual structure, and priority repayment over common stockholders. The report suggests this model could be a viable solution for Strategy (MSTR), which holds approximately $8.3 billion in convertible debt. The largest portion of Strategy's debt is a $3 billion tranche with a put option in June 2028 and a conversion price of $672.40, about 300% above its current share price. The move comes after Strive announced on Jan. 22 that it was seeking to raise an additional $150 million to purchase BTC.