Strive’s Bitcoin plan could lift annual dividends to $257 million

Bitcoin treasury company Strive plans to sell five million shares of a new preferred stock called SATS for $100 each. The Oct. 13 announcement would raise $500 million if the offering is completed.

SATS would pay a fixed annual dividend of 15%, adding about $75 million in yearly payments. Dividend payments are scheduled to begin Nov. 9 on business days, subject to board approval and available funds.

Strive plans to use most of the proceeds to buy Bitcoin while its price remains below $100,000. In a model based on a full offering, the company would allocate $387.5 million to Bitcoin purchases and reserve $112.5 million for 18 months of dividend payments. At an assumed Bitcoin price of $82,500, the purchases would add about 4,697 BTC.

Strive held 35,595 BTC as of Oct. 14, up from 7,627 BTC at the beginning of 2026. If the modeled purchases occur, its holdings would rise to about 40,000 BTC.

The new security would give Strive another financing option as issuance of its existing SATA preferred stock faces restrictions. SATA has a variable dividend currently set at 13% and a stated value of $100. Strive does not issue SATA below that value, limiting its ability to raise capital when the security trades below $100.

SATA’s outstanding stated amount has increased from $200 million at its November 2025 launch to about $1.4 billion. Strive CEO Matt Cole wrote in the offering materials that SATA and Strategy’s comparable STRC preferred stock have traded at or above their $100 stated values on fewer than 25% of trading days since their respective launches.

“We need substantially more access to digital credit now,” Cole wrote. The offering materials state that Strive created SATS after identifying demand for predictable income and greater potential for capital appreciation.

Unlike SATA, SATS will not have a mechanism designed to keep its market price near $100. SATS will rank below SATA in Strive’s capital structure and above common equity.

If Strive issues all five million SATS shares, its annual preferred-dividend obligation would reach about $257.4 million, assuming SATA’s dividend remains at 13%. The company expects to retain approximately $386 million in cash and marketable securities after the offering, enough to cover about 18 months of combined dividend payments.

Strive’s internal model assumes Bitcoin will compound at 50% annually through 2030, compared with SATS’s fixed 15% dividend. The additional financing would raise the company’s targeted Bitcoin amplification ratio-the value of preferred equity and debt relative to its Bitcoin holdings-to between 60% and 70%.

The financing would also increase Strive’s obligations if Bitcoin prices decline. Stress tests show that the company’s total assets would equal the stated amount of its preferred shares at a Bitcoin price of about $38,200. Strive has no outstanding debt, and its Bitcoin holdings are unencumbered, according to Chief Investment Officer Ben Werkman.

Bitcoin does not produce recurring income. After the initial reserve period, Strive would need to use cash, sell assets or raise additional capital to continue paying dividends. Its preliminary prospectus identifies additional financing, including at-the-market securities offerings, as a potential source of future payments. Missed preferred dividends would accumulate and restrict distributions to common shareholders, but would not automatically constitute a debt default.