Strive’s new $500 million Bitcoin financing plan comes with a $257 million annual dividend problem

Bitcoin treasury company Strive is introducing a second preferred-stock product to accelerate Bitcoin purchases beyond the limits of its existing financing strategy.

On Oct. 13, the company announced plans to offer five million shares of SATS, a perpetual preferred security with a fixed 15% annual dividend. At $100 per share, the firm would raise $500 million to support additional Bitcoin acquisitions.

The launch follows the rapid expansion of Strive's existing SATA preferred stock, whose outstanding stated amount has climbed from $200 million at its November 2025 debut to approximately $1.4 billion.

Strive's Bitcoin holdings have grown alongside that financing program, rising from 7,627 BTC at the beginning of 2026 to 35,595 BTC as of Oct. 14.

The new product comes as restrictions on SATA issuance constrain Strive's ability to raise capital. Management wants to expand Bitcoin purchases while prices remain below $100,000, but the additional financing could push its annual preferred-dividend obligations above $257 million.

SATS will pay a fixed 15% annual dividend on a $100 stated amount, compared with SATA's variable 13%. Payments are scheduled every business day beginning Nov. 9, subject to board approval and available funds.

Unlike SATA, which targets a trading price around $100, SATS will have no comparable price-stability mechanism. The new shares will rank below SATA in Strive's capital structure but ahead of common equity.

Strive CEO Matt Cole said the company developed SATS after identifying demand from investors seeking predictable income and greater potential for capital appreciation.

Some existing SATA holders were concerned about possible reductions in its variable dividend, while institutional investors wanted more exposure to price appreciation.

The new structure also addresses a constraint on Strive's ability to raise capital.

According to Cole, SATA and Strategy's comparable STRC preferred stock have traded at or above their $100 stated amounts on fewer than 25% of trading days since their respective launches.

With Strive maintaining a policy against issuing SATA below $100, those trading patterns limit its ability to raise additional capital through the security.

Cole said the company needs “substantially more access to digital credit now” to expand its Bitcoin holdings at current prices.

SATS would let Strive pursue additional financing without SATA's issuance-price restriction, though the amount it can raise would still depend on investor demand.

Strive plans to use the additional financing capacity provided by SATS to accelerate its Bitcoin accumulation and increase potential returns for common shareholders.

Chief Risk Officer Jeff Walton said the company intends to achieve this through greater Bitcoin amplification, which measures outstanding preferred equity and debt at stated value relative to the market value of its Bitcoin holdings.

Strive is targeting an amplification ratio of 60% to 70% after the SATS launch, giving common shareholders greater exposure to Bitcoin price movements.

To illustrate the potential expansion, Strive's investor presentation models a $500 million SATS financing, with $387.5 million allocated to Bitcoin purchases and $112.5 million designated for an 18-month dividend reserve.