Million

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<img width="1920" height="1080" src="https://blockchainreporter.net/wp-content/uploads/2025/03/bitcoin-btc-8.webp" alt="bitcoin-btc main" style="float: right; margin-left: 5px;" title="Strive Plans $500 Million Preferred Offering at a 15% Dividend to Buy Bitcoin 8">
<p>Strive, Inc. (Nasdaq: ASST), the bitcoin-focused structured finance company, plans to raise $500 million through a new perpetual preferred stock carrying a fixed 15% annual dividend, with bitcoin purchases listed as a primary use of the proceeds. The company disclosed the plan in a <a href="https://www.globenewswire.com/news-release/2026/10/13/3380189/0/en/strive-announces-proposed-initial-public-offering-of-sats-stock.html" rel="noopener noreferrer nofollow">press release</a> on Oct. 13.</p>
<p>Subject to market conditions, the offering would sell 5 million shares of 15.00% Series A Perpetual SATS Preferred Stock at a stated amount of $100 per share. At 15%, the new security pays more than Strive’s existing variable-rate SATA preferred, currently set at 13%, and it ranks junior to SATA in the capital structure.</p>
<h2 id="the-terms-of-the-sats-offering">The Terms of the SATS Offering</h2>
<p>Dividends accumulate at 15% per year on the $100 stated amount and are payable only when declared by Strive’s board, with regular payment dates beginning Nov. 9, 2026; the first scheduled payment would include dividends accrued from the closing date. Strive plans to set aside a reserve equal to 18 months of payments, $22.50 per share (about $112.5 million across the 5 million shares), funded with cash on hand and securities.</p>
<p>Proceeds are earmarked for general corporate purposes, including bitcoin and bitcoin-related products, working capital, income-generating assets, capital expenditures, repurchases of common stock or SATA, and potential acquisitions. Barclays and Cantor are joint book-running managers, with Clear Street as lead manager, under an effective SEC shelf registration.</p>
<h2 id="why-a-15-dividend-for-bitcoin-treasury-capital">Why a 15% Dividend for Bitcoin-Treasury Capital</h2>
<p>Strive describes bitcoin as its “hurdle rate” for deploying capital, a benchmark any new commitment must be expected to clear. Paying a fixed 15% means the company is betting it can earn more than that cost by holding bitcoin, which traded near $83,400 early on Oct. 14, and by growing its income-generating assets.</p>
<p>The 15% coupon is the price of subordination. SATS holders sit junior to SATA, so they receive a higher, fixed dividend for taking more risk. Unlike the convertible-debt financing favored by the largest bitcoin treasury, Strategy, which <a href="https://blockchainreporter.net/strategy-adds-250-bitcoin-holdings-top-848250-btc/" rel="noopener noreferrer nofollow">added 250 bitcoin in its latest weekly buy</a>, preferred equity carries a visible cash dividend but no maturity or forced-conversion overhang.</p>
<h2 id="the-risks-built-into-the-terms">The Risks Built Into the Terms</h2>
<p>A fixed 15% cumulative dividend is a heavy, ongoing cash obligation of roughly $75 million a year if fully declared. The liquidation preference starts at $100 per share but adjusts daily in part to track SATS’s own market price, which can expose holders to downside beyond the stated amount. Strive may redeem the shares only if the outstanding count falls below 25% of those originally issued or on tax events, and holders gain a repurchase right only on a “fundamental change.”</p>
<p>The offering is not yet priced and remains subject to market conditions, so the final terms and closing date are unresolved. The next observable steps are the pricing and completion of the deal, the first dividend date on Nov. 9, and whether Strive deploys the proceeds into bitcoin near current levels. Strive’s last disclosed treasury move was <a href="https://blockchainreporter.net/strive-buys-1355-bitcoin-treasury-26355-btc/" rel="noopener noreferrer nofollow">buying 1,355 bitcoin in late September</a>, lifting its holdings to 26,355 BTC.</p>
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Strive Plans $500 Million Preferred Offering at a 15% Dividend to Buy Bitcoin

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