Strive’s SATS preferred shares will carry a fixed annual dividend rate of 15% at par value, ranking below its existing SATA preferred stock, which currently offers a variable dividend rate of 13%.
Bitcoin-focused treasury company Strive (ASST) announced Tuesday evening that it plans to launch SATS, a new perpetual preferred share class with a fixed 15% dividend yield.
The firm aims to raise $500 million by selling 5 million shares at $100 apiece. The funds could go toward additional Bitcoin (BTC) purchases, investments in income-generating assets or share repurchases.
SATS will have a lower priority than Strive’s existing perpetual preferred shares, SATA, whose dividend rate fluctuates and currently stands at 13%.
Like SATA, the new SATS shares will distribute dividends daily. Following the offering’s completion, Strive intends to set aside a reserve covering the first 18 months of dividend payments for SATS investors.
Strive has recently expanded its Bitcoin reserves at a rapid pace, distinguishing itself from many other corporate Bitcoin holders, including the much larger Strategy.
Last week, Strive added 3,311 BTC to its holdings, bringing its total Bitcoin reserves to 32,773 coins, worth approximately $2.7 billion. The company held fewer than 20,000 BTC just three months earlier.
