New SATS Preferred Share Carries 15% Fixed Dividend
Bitcoin treasury company Strive AS, trading at $27.60 as of Tuesday's close, announced the creation of a new perpetual preferred stock designated SATS. The instrument carries a fixed dividend rate of 15%, making it a distinct offering from the company's existing preferred equity.
Strive plans to issue 5 million shares of the new class at a price of $100 each, which would generate a total capital raise of $500 million. The company stated that the proceeds will be directed toward purchasing additional bitcoin (BTC, valued near $83,500 at the time of the announcement), acquiring income-producing assets, or executing share buybacks.
Capital Structure and Dividend Reserve
The newly created SATS class will rank junior to Strive's existing perpetual preferred equity, SATA, which bears a variable dividend rate currently set at 13%. This layered structure gives SATA holders priority in the event of liquidation or dividend distribution.
In a step designed to reassure investors of the company's commitment to servicing the new obligation, Strive said it will establish a dedicated dividend reserve at the closing of the offering. That reserve will be sized to cover the first 18 months of dividend payments on the SATS shares, providing a visible buffer ahead of the initial payout period.
Rapid Expansion of Bitcoin Holdings
Strive stands out among its peers in the bitcoin treasury space for the pace at which it has been accumulating digital assets. While many comparable firms, including the much larger Strategy, have slowed or paused their purchases, Strive has continued to add coins at a notable clip over the past several weeks.
According to the company's latest disclosures, it acquired 3,311 bitcoin during the most recent week, pushing its total holdings to 32,773 coins. At current market prices, that portfolio is valued at approximately $2.7 billion. Just three months earlier, Strive's holdings had been below 20,000 bitcoins, meaning the company has nearly doubled its position in a short window.
Broader Implications for the Bitcoin Treasury Sector
The move underscores a growing trend among publicly listed bitcoin treasury companies to tap preferred equity markets for funding. By offering a fixed, above-market dividend, Strive is attempting to attract institutional and income-oriented investors seeking exposure to digital-asset upside while receiving a predictable cash return. The 15% rate on SATS, combined with the 13% variable rate on SATA, positions the company as an aggressive issuer of high-yield preferred instruments in a sector where many peers have shifted toward variable or lower-coupon structures.
The company's stated flexibility in deploying the $500 million — whether toward further bitcoin accumulation, income-producing assets, or buybacks — gives management latitude to respond to market conditions while maintaining a diversified balance sheet beyond a single digital-asset position.
