Strive Introduces SATS With a 15% Dividend and Daily Payments

Strive is expanding its preferred-stock lineup. The company announced a proposed offering of 5 million SATS shares on October 13, carrying a 15% annual dividend on a $100 stated amount.

For income investors, the comparison starts with SATA. For ASST holders, the question is how much additional Bitcoin Strive can accumulate relative to the cost of this new capital.

What SATS would pay

SATS would pay $15 annually per share, equivalent to $1.25 a month, distributed on business days beginning November 9. Payments require board declaration and legally available funds. The dividend is cumulative, meaning unpaid amounts accrue.

At a $100 purchase price, 100 shares would cost $10,000 and produce $1,500 annually if dividends are paid in full. That is $125 in monthly-equivalent income.

The offering has not been priced. The $100 stated amount is the basis for calculating dividends, not a confirmed purchase price. A different purchase price changes the investor’s yield. See the SATS securities page for terms and income examples.

How SATS differs from SATA

Sources: SATS preliminary prospectus and Strive’s October 13 SATA filing.

SATS’s extra two percentage points come with a lower position in the capital structure. SATA holders would be paid first for dividends and liquidation distributions; SATS would still rank ahead of common shareholders.

A second source of Bitcoin funding

SATS could reduce Strive’s reliance on SATA for preferred financing by reaching investors who prefer a fixed dividend. SATA’s governing documents now prohibit company sales below $100 before fees. The SATS preliminary prospectus does not specify a comparable issuance floor and outlines a planned ATM after listing, with terms still unset.

That could give Strive another route to fund Bitcoin purchases when SATA issuance is constrained. Flexibility has a price: SATS issued at an illustrative $90 would still accrue $15 annually, a 16.7% dividend cost on gross proceeds, while adding at least a $100 liquidation claim. Funding during a downturn would still depend on investor demand and whether the economics justify issuing more preferred stock.

The reserve and the recurring cost

Strive plans to fund an 18-month dividend reserve with existing cash and securities. At $22.50 per SATS share, the proposed offering would require $112.5 million. The reserve would remain company-managed, without independent escrow; it is not a payment guarantee.

Five million shares would also add $75 million in annual dividends. If issued at $100, they would raise $500 million before fees. That proceeds figure remains illustrative until pricing is announced.

The announcement permits several uses of proceeds, including Bitcoin purchases, income-producing assets, acquisitions, and ASST or SATA repurchases. The Bitcoin allocation remains undetermined.

What this means for ASST holders

SATS is nonconvertible. Issuing it would not itself increase ASST’s common-share count, so Bitcoin bought with the proceeds could increase raw BTC per share.

For illustration, a $500 million sale, less assumed offering costs of 2.5%, would leave $487.5 million. If all of it bought Bitcoin at an assumed $83,234, Strive would add about 5,857 BTC. Holding October 9’s effective common-share count unchanged, gross sats per share would rise from approximately 29,689 to 34,995, or 17.9%. This is a scenario, excluding subsequent warrant exercises and other transactions.

Common holders would nevertheless sit behind an additional preferred claim. In that example, the $487.5 million of new assets would carry a $500 million initial liquidation preference. More BTC per share therefore needs to be weighed against the financing cost and the assets remaining after preferred claims.

The prospectus says Strive expects to fund cash dividends primarily through further capital raises after the reserve period. A prolonged Bitcoin decline could make that funding harder while cumulative dividends continue accruing.

For ASST holders, the next meaningful numbers are the final offering price, net proceeds, and how much of the capital actually reaches Bitcoin.