Strive’s new $500 million Bitcoin financing plan comes with a $257 million annual dividend problem
Strive plans to offer five million SATS perpetual preferred shares at $100 each, potentially raising $500 million for Bitcoin purchases. SATS carries a fixed 15% annual dividend and is designed to bypass issuance-price limits on the company’s existing SATA shares. A full offering would add $75 million in yearly dividends, bringing modeled annual preferred payments to about $257 million. Strive’s projections allocate $387.5 million to Bitcoin and $112.5 million to an 18-month dividend reserve; at an assumed $82,500 per Bitcoin, purchases would add roughly 4,697 BTC. The strategy aims to increase Bitcoin exposure, but depends on price appreciation and continued access to capital. Bitcoin produces no income, and a prolonged downturn could make dividends harder to fund and amplify losses for common shareholders.
