Strive Expects Fundraising to Support SATS Dividends After Reserve

Strive, Inc. priced seven million shares of its 15% Series A Perpetual SATS Preferred Stock at $90 each on Thursday, Oct. 15, targeting $630 million in gross proceeds. The offering is larger than Strive’s earlier five-million-share plan, and settlement is scheduled for Tuesday, Oct. 20, subject to customary closing conditions.

The 15% dividend rate applies to a $100 stated amount, or $15 per share annually. At the $90 offering price, that equals an indicated annual yield of 16.67% if the full dividend is declared and paid. Across seven million shares, the potential annual dividend total would be $105 million if paid in full.

Cash dividends depend on a declaration by Strive’s board and funds legally available for payment. The monthly amount is divided into installments paid on business-day payment dates. The first payment is anticipated for Nov. 9 if declared, and unpaid dividends do not earn additional interest.

At closing, Strive intends to increase its existing dividend reserve by adding $22.50 per share, or $157.5 million across the offering. The company describes the addition as covering the first 18 months of payments and plans to fund it with existing cash and securities. After that period, Strive expects additional capital raising, including at-the-market securities offerings, to be its primary source of cash dividends.

Strive may use net proceeds for general corporate purposes, including Bitcoin (BTC) and Bitcoin-related products, working capital, income-generating assets, capital expenditures, acquisitions of businesses, assets or technologies that complement its business, and repurchases of Class A common stock or SATA preferred stock. The company has not assigned amounts to each use. Bitcoin itself does not generate interest, so the asset does not by itself provide a stream of dividend income.

SATS is preferred stock issued by Strive, not a direct claim on Bitcoin. It has an initial $100 liquidation preference and ranks ahead of Strive’s common stock but behind SATA preferred stock and future indebtedness. The shares are also structurally junior to liabilities at Strive subsidiaries. Strive has applied to list SATS on Nasdaq, and an active trading market may not develop. The planned settlement date is Tuesday, Oct. 20.