The hidden trade behind Strive’s 16.7% Bitcoin income offer
Strive priced seven million perpetual SATS preferred shares at $90 each, below their $100 stated amount, raising up to $630 million before expenses to support its business and acquire Bitcoin, among other uses. The $15 annual dividend implies a 16.7% yield at the offering price, with payments scheduled to begin Nov. 9. But the shares have no maturity date or routine right to repayment at $100, so resale value can fall even if dividends continue. SATS ranks behind existing SATA preferred stock, debt and certain subsidiary obligations, and Strive may issue securities with equal or higher priority. An initial reserve is intended to cover 18 months of dividends; longer-term payments may depend on new financing, income or asset sales. The high yield compensates investors for payment, priority, duration and resale risks.
