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FIGR_HELOC $1.07 Strive closes $630M SATS preferred stock offering with 15% dividend
Strive sold 7 million SATS preferred shares at $90 each, carrying a 15% annual dividend and a planned $157.5 million dividend reserve.
Key takeaways
- Seven million shares sold. Strive sold 7 million SATS preferred shares at $90 each for $630 million in gross proceeds.
- Dividend is fixed at 15%. The 15% rate applies to a $100 stated value, an initial yield of about 16.67% at the $90 price.
- Reserve covers 18 months. Strive outlined a $157.5 million dividend reserve but did not confirm the amount placed at closing.
What happened
Strive closed an upsized public offering of 7 million SATS preferred shares at $90 each, raising $630 million in gross proceeds before fees and expenses. The company priced the larger deal on October 15, and the final size was 40% bigger than the 5 million shares first proposed on October 13. Trading was expected to start on the Nasdaq Global Market under the ticker SATS on or around October 20.
The SATS shares pay a fixed 15% annual dividend on a $100 stated value, even though buyers paid $90. At the offering price, that works out to an initial yield of about 16.67% if the full dividend is declared and paid. Payments are scheduled for each business day starting November 9, subject to board approval and available funds.
Strive said it planned to set aside $22.50 per SATS share from existing cash and securities to fund 18 months of dividends, or $157.5 million at the final size. The company did not confirm how much had been placed in the reserve when it announced the closing.
First $84.4KLatest $83.1K-1.6% over the period
Points are daily observations, not closing prices.
Why it matters
SATS gives Strive a second preferred security alongside its existing SATA stock, which carries a variable dividend rate of approximately 13%. SATA ranks ahead of SATS for dividends and liquidation claims, and both sit above the common stock, ASST. CEO Matt Cole said SATS would add a capital source while strengthening SATA's credit profile.
The offering funds a bitcoin accumulation strategy without issuing more common shares. Strive bought another 4,045 BTC between October 12 and October 16, lifting its holdings to 36,818 BTC, worth about $3 billion at recent prices. Cole has described a target amplification ratio of 60% to 70% while bitcoin trades below $100,000.
Strive reports no consolidated debt and says its bitcoin remains unpledged, but the preferred shares carry cumulative dividend commitments. Proceeds may go toward more bitcoin purchases, income-producing assets, working capital and share repurchases.
What is still unclear
- Strive has not confirmed how much of the planned $157.5 million dividend reserve was funded at closing.
Questions readers ask
What is Strive's SATS preferred stock?
It is Strive's 15% Series A Perpetual Preferred Stock, sold at $90 per share with a $100 stated value. It pays a fixed annual dividend and trades under the ticker SATS on Nasdaq.
How much did Strive raise in its SATS offering?
Strive raised $630 million in gross proceeds by selling 7 million SATS shares at $90 each, before underwriting fees and other expenses.
When does Strive pay SATS dividends?
Payments are scheduled for each business day beginning November 9, subject to board approval and available funds. The dividends are cumulative, so unpaid amounts keep accruing.
How does SATS differ from Strive's SATA stock?
SATA carries a variable dividend rate of approximately 13% and ranks ahead of SATS for dividends and liquidation claims. SATS pays a fixed 15% rate but sits lower in the capital structure.
