Strive Plans $500 Million Preferred Deal With 15% Dividend

Strive, Inc. plans to raise $500 million through a perpetual preferred stock offering, subject to market conditions. The bitcoin-focused structured finance company disclosed the plan Oct. 13.

The offering would include 5 million shares of 15.00% Series A Perpetual SATS Preferred Stock at a stated amount of $100 per share. The shares have not been priced, and Strive has not set a closing date.

Dividends would accumulate at an annual rate of 15% on the $100 stated amount and would be payable only when declared by Strive’s board. Regular payment dates are scheduled to begin Nov. 9, 2026. The first payment would cover dividends accrued from the closing date.

Strive plans to reserve 18 months of dividend payments, equal to $22.50 per share, or about $112.5 million for the full offering. The reserve would be funded with cash and securities already held by the company.

The company may use the proceeds for general corporate purposes, including purchases of bitcoin and bitcoin-related products, working capital, income-generating assets, capital expenditures, repurchases of common stock or its existing SATA preferred stock, and potential acquisitions.

SATS would rank below Strive’s existing SATA preferred stock in the capital structure. SATA currently has a variable dividend rate of 13%, while SATS would carry a higher fixed rate. Strive describes bitcoin as its “hurdle rate” for capital deployment, meaning new investments are expected to generate returns above their financing costs.

If the full dividend rate is declared, SATS would create an annual payment obligation of about $75 million. The shares would have a starting liquidation preference of $100, adjusted daily in part according to the market price of SATS. Strive could redeem the shares if fewer than 25% of the originally issued shares remain outstanding or in connection with certain tax events. Holders would have a repurchase right only after a “fundamental change.”

Barclays and Cantor are joint book-running managers, and Clear Street is the lead manager. The offering is being conducted under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission.

Bitcoin traded near $83,400 early Oct. 14, according to the source material. Strive’s latest disclosed bitcoin purchase was in late September, when it bought 1,355 bitcoin and increased its holdings to 26,355 BTC.