Strive has launched SATS, a new perpetual preferred stock with a fixed annual dividend of $15 per share, based on a stated value of $100. These dividends are cumulative, meaning unpaid amounts accrue as an obligation to shareholders.
The SATS instrument features a floating liquidation preference that adjusts based on market prices, though it resets to the $100 floor if the stock trades at that level for 10 consecutive trading days.
Strive plans to maintain a dividend reserve equivalent to 18 months of payments, or $22.50 per share. This requirement means that for every share sold at par, 22.5% of the proceeds must be held in cash equivalents.
The company may issue additional shares through an at-the-market offering. If SATS trades above its $100 stated value, the premium raised could potentially increase the net Bitcoin per share for common stockholders.
