Strive's SATS Preferred Stock and the Bitcoin-per-Share Math Behind Its 15% Dividend

Strive's new SATS preferred stock pays a fixed 15% dividend

Strive has listed a new perpetual preferred stock called SATS. Preferred stock is a type of share that usually pays a set dividend and sits ahead of common shares when a company pays out or winds down. SATS pays a fixed annual dividend of $15 per share, based on a $100 stated amount and a 15% rate.

An analysis published on October 21, 2026 by Allard Peng, a research and insights analyst at Bitcoin for Corporations, argues that if SATS trades above its $100 stated amount, Strive could sell more shares and increase the amount of bitcoin attributed to each common share. The analysis is an opinion piece with hypothetical figures, not a prediction.

The article notes that Strive is a member of Bitcoin For Corporations and pays it membership fees, and that Strive did not review the article before publication.

Fixed and cumulative dividends, unlike SATA

• SATS pays a fixed $15 per share each year. Strive's SATA preferred currently pays an annualized $13 per share but uses a variable rate, so that income could fall in the future, according to the article.
• SATS dividends are cumulative. Strive can defer them, but unpaid amounts build up as an obligation to preferred shareholders.
• Dividends are only payable when, as and if declared by Strive's board, and may be deferred.
• SATS ranks junior to SATA, meaning SATA has a stronger claim on the company.

The argument that SATS could trade above $100

The article compares SATS with Strategy's STRD, a junior preferred stock. It says STRD trades around $71 per share, about 29% below its $100 stated amount, and pays a fixed $10 annual dividend, which works out to an effective yield of about 14%. STRD dividends are non-cumulative, meaning Strategy can skip them without creating a later obligation.

The article also says Strategy's bitcoin holdings give STRD stronger asset coverage than Strive's holdings give SATS, and that STRD's coverage is about twice that of SATA, described as Strive's most senior instrument.

Even so, the author argues that income investors may care more about whether dividends get paid than about coverage ratios. He gives a hypothetical example: if investors pushed SATS to a 13% effective yield, its price would reach $115.38.

How an above-par sale could add bitcoin per share

The article works through a hypothetical. If SATS trades at $115 and Strive sells 1 million more shares at that price, it raises $115 million and buys bitcoin.

Under a Net Bitcoin Per Share method that subtracts preferred stock at its $100 stated amount, the new shares add only $100 million in preferred claims. The other $15 million counts toward the net bitcoin attributed to common shareholders. The article calls this raising $115 of capital for every $100 of preferred claims created. The $15 annual dividend then equals an effective financing cost of about 13.04% on the money raised, and the company would not need to issue more common shares.

The article states that Net Bitcoin Per Share is a Strategy-defined metric and is not a figure Strive reports.

What the prospectus says about liquidation and taxes

SATS has a floating liquidation preference, which adjusts with recent market prices. The article says the formula uses the prior trading day's closing price around new issuance and the average closing price over the preceding 10 trading days, with a $100 floor.

If SATS trades at $115, the preference can move toward $115, which temporarily raises the preferred shareholders' economic claim and offsets some or all of the apparent accretion. If SATS then trades at $100 for 10 trading days, the preference returns to $100, and the article says the company keeps the extra capital raised above par.

The article argues this caveat matters little in practice, because the exact figure only becomes relevant in a liquidation, which would require bankruptcy, and in that case the shares would likely fall below $100 and the preference would reset to $100 anyway.

Strive's prospectus also flags tax risks if shares are issued above the liquidation preference, including deemed distributions, treatment as disqualified preferred stock, and treatment as fast-pay stock, according to the article.

Cost of capital at different prices

The article lists hypothetical effective dividend costs based on where SATS trades: about 13% at $115, 15% at $100, and about 16.67% at $90, where new issuance also becomes dilutive under the Net Bitcoin Per Share method. Dilutive means existing holders' share of the company's value would shrink.

Strive also plans to hold an 18-month dividend reserve equal to $22.50 per SATS share. The article says that if shares sell at par, $22.50 of every $100 raised would sit in cash-like holdings while about $77.50 could go into bitcoin, which makes the true cost of capital higher than the dividend rate on the shares.

What is confirmed

• SATS is a Strive perpetual preferred stock with a $100 stated amount and a fixed $15 annual dividend, equal to a 15% rate.
• Its dividends are cumulative but payable only when, as and if declared, and may be deferred.
• SATS ranks junior to Strive's SATA preferred stock.
• Strive intends to hold an 18-month dividend reserve of $22.50 per SATS share.
• Strive's prospectus identifies tax risks tied to issuing shares above the liquidation preference.
• Strive is a member of Bitcoin For Corporations and pays membership fees. Strive did not review the article before publication.

What is still unclear

The central question is whether SATS will trade above its $100 stated amount. The article does not confirm that it will. Whether the accretion described actually happens depends on the market price of SATS and on how investors value its dividend.

The prices, yields and outcomes in the article are hypothetical illustrations rather than forecasts. Net Bitcoin Per Share is described as the author's methodology, not a metric reported by Strive. Third-party data cited in the article is as of October 21, 2026.

Why the analysis says this matters

Per the article, if investors keep valuing SATS at an effective yield below 15%, Strive could sell shares above par, buy more bitcoin, and potentially increase net bitcoin per share under that method. If SATS cannot hold a premium, the article says the situation would not apply.

The author describes the opportunity as the gap between the $100 stated amount and the price income investors are willing to pay for a fixed, cumulative $15 yearly dividend.

The article adds a caution: Strive would need discipline when selling SATS through an at-the-market program, because locking in mid-to-high-teens costs of capital would only work if returns from bitcoin are very large and price swings do not drag results down.

Sources

• Bitcoin Magazine