Strive Prices 15% Preferred Stock at $90 to Raise About $630 Million

Strive priced seven million shares of a new perpetual preferred stock at $90, raising about $630 million before underwriting discounts and expenses. The deal gives the Bitcoin treasury company long-duration capital, but the 15% dividend makes that capital expensive.

The security, called SATS, carries a $100 stated amount and a cumulative annual dividend of $15 per share, payable daily if declared by the board. At the $90 offering price, the stated dividend equates to a 16.7% annual yield. That high yield is the clearest measure of the market's required compensation for taking issuer, Bitcoin and structural risk.

The company added two million shares to the planned offering. It said proceeds may fund Bitcoin and related products, working capital, income-producing assets, capital spending, or repurchases of common shares and its existing SATA preferred stock. The range of permitted uses gives management flexibility, while offering investors less certainty about how quickly the proceeds will be deployed.

SATS ranks above common equity but below Strive's variable-rate SATA preferred. It is perpetual, so there is no maturity date forcing repayment of principal. That structure can better match an asset such as Bitcoin, which does not produce contractual cash flow, but it also creates a continuing dividend claim ahead of common shareholders.

At closing, Strive plans to place an amount equal to 18 months of SATS dividends into its dividend reserve. The reserve can support early payments, but it does not change the long-term economics. Ultimately, Strive must earn returns on the capital that exceed the preferred dividend and other costs.

For common shareholders, the relevant calculation is not simply whether Bitcoin rises. It is whether the appreciation and any income earned on deployed assets exceed a 15% stated dividend while preserving adequate liquidity. The offering expands Strive's buying power and reduces refinancing pressure, but it raises the hurdle rate that future investments must clear.