Key Notes
- Strive has proposed five million SATS perpetual preferred shares, representing $500 million at their $100 stated amount before final pricing.
- The shares would accrue cumulative 15% annual dividends, with business-day payments subject to board declaration and an 18-month reserve planned.
- SATS would rank below SATA, while proceeds could support Bitcoin purchases, income-producing assets, working capital and share repurchases.
Strive has proposed a new perpetual preferred-share offering carrying a fixed 15% annual dividend rate, adding another potential financing channel for its Bitcoin treasury. The company plans to offer five million SATS shares with a $100 stated amount each, representing $500 million in stated value.
The Nasdaq-listed company announced the proposed offering on October 13, subject to market conditions. Bitcoin purchases are among the intended uses, alongside income-producing assets, working capital and repurchases of its existing securities.
The $500 million figure describes the issue’s scale at its stated amount. Strive’s preliminary prospectus leaves the public offering price, underwriting discounts and net proceeds blank. The proposal therefore does not establish that $500 million has been raised or that the final sale price will be $100.
A fixed dividend with business-day payments
SATS would accumulate cumulative dividends at 15% annually on the $100 stated amount, equivalent to $15 per share over a full year. If all five million proposed shares were issued, that would represent $75 million in annual dividend accruals, a CoinScreamer calculation.
Regular payment dates would fall on each business day beginning November 9, 2026. Payments remain subject to declaration by Strive’s board or an authorized committee and the availability of legally distributable funds. The first scheduled payment, if declared in full, would include accumulated dividends from the offering’s closing.
The distinction between accrual and payment matters. Cumulative dividends build up even when they are not declared, but the prospectus does not require the board to declare them simply because funds are available. The 15% rate is a dividend calculation, rather than a guaranteed total investment return.
Strive also says the amount calculated for each calendar month would be divided into equal installments across that month’s regular business-day payment dates. Weekends would not be separate scheduled payment dates.
An 18-month reserve would accompany the issue
At closing, Strive intends to add $22.50 per SATS share to its dividend reserve, enough to cover the first 18 months of payments at the proposed rate. For five million shares, that would total $112.5 million, another calculation based on the disclosed terms.
The company plans to fund the reserve with existing cash and securities valued at closing. That allocation would use existing balance-sheet resources; the filing has not fixed net proceeds from the new offering.
The reserve would be invested in capital-preservation instruments, including short-term investment-grade interest-bearing securities and money-market funds. Income earned on those assets could return to Strive for working capital and other corporate uses, including additional Bitcoin purchases.
Beyond that initial reserve, the prospectus says Strive expects to fund cash dividends primarily through further capital-raising activities, including at-the-market securities offerings. The new class would therefore add a recurring cash requirement alongside the capital it could supply.
SATS would sit below SATA in the capital structure
The proposed shares would rank below Strive’s existing SATA preferred stock for dividends and distributions in a liquidation. SATS would sit above common stock, while future company debt and liabilities at subsidiaries would have higher-ranking claims under the disclosed structure.
SATA carries a variable dividend rate. Strive’s website lists an annualized dividend of $13 per share on a $100 stated amount, or 13%, alongside market data dated October 9. SATS would introduce a higher fixed rate with a lower position in the payment hierarchy.
These are separate preferred-equity instruments. SATS would not be convertible into common shares or other property, and its terms do not give holders a fixed Bitcoin redemption entitlement. Its perpetual structure also has no scheduled maturity, although specified redemption and fundamental-change repurchase provisions would apply.
Strive has applied to list SATS on the Nasdaq Global Market. If approved, the company expects trading to begin within 30 days after issuance. It also intends to establish an at-the-market program after listing, but has not set that program’s terms.
The proposal follows a 3,311 BTC purchase
The financing plan follows Strive’s latest treasury expansion. Its separate October 13 holdings filing disclosed the purchase of 3,311 BTC during October 5–9 at an average price of approximately $84,500, including fees and expenses.
That brought the treasury to 32,773 BTC as of October 9. CoinScreamer’s purchase coverage put the acquisition cost at about $280 million using the company’s dashboard. Those purchases preceded the proposed SATS offering.
Strive also reported $310.3 million in cash and cash equivalents and about $50.3 million in Strategy’s STRC preferred shares. Its investment in another issuer’s preferred security is separate from Bitcoin held directly on its own balance sheet.
The same financing market is shaping treasury management at larger issuers. Our Strategy update covered that company’s recent Bitcoin purchases alongside $192.4 million of STRC repurchases. For Strive, the new proposal would add fixed-rate preferred equity to a capital structure already using variable-rate SATA.
Barclays and Cantor are the joint book-running managers, with Clear Street as lead manager. Pricing, closing and Nasdaq approval remain the next steps. The proceeds could support further Bitcoin accumulation, but Strive retains broader corporate uses rather than committing the entire offering to an immediate BTC purchase.
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