Strive Declares First SATS Dividend After Closing $630 Million Offering

Strive Inc. has declared the first cash dividend on its 15% Series A Perpetual SATS Preferred Stock, setting a $0.8710-per-share payment for Nov. 9 after its $630 million offering closed Oct. 20.

The board declared the distribution on Oct. 21. Holders of record on Nov. 6 are eligible for payment, which covers an initial period from Oct. 21 through Nov. 9. The declaration divides that period into eight business days through Oct. 31 and six more from Nov. 1 through Nov. 9.

SATS carries an annual dividend rate of 15% on a $100 stated amount, or $15 per share over a full year if paid in full. The stated amount is the basis for calculating the dividend; investors paid $90 per share in the offering. At that price, a full $15 annual payment would represent a 16.7% annualized yield. The initial $0.8710 payment covers only the opening period, rather than a full year.

Dividend payments are scheduled for each business day beginning Nov. 9, subject to board declarations and legally available funds. Dividends accumulate whether or not they are declared, but unpaid amounts earn no additional interest or dividends.

Strive completed its SATS preferred stock offering on Oct. 20, selling seven million shares at $90 each for $630 million in gross proceeds. The offering had expanded from an initial five million shares. Estimated net proceeds were $608.15 million after underwriting discounts, commissions and offering expenses.

Strive plans to add $22.50 per share to an existing dividend reserve for the first 18 months, using cash and securities it already holds. The reserve plan is separate from the possible uses of remaining proceeds. After the reserve period, Strive expects to fund cash dividends primarily through additional capital raises.

Potential uses for the remaining proceeds include Bitcoin (BTC) purchases, working capital, income-generating assets, capital expenditures, share repurchases and acquisitions. Strive has not assigned a specific amount to any one use.

SATS ranks above Strive’s common stock but below SATA preferred stock and existing or future debt. Liabilities at Strive subsidiaries also rank ahead of SATS. Chairman and CEO Matt Cole said the offering would “strengthen SATA’s credit profile by adding junior capital beneath it.”