On the evening of October 13, 2026, asset management and Bitcoin treasury company Strive (Nasdaq ticker: ASST) officially announced plans for an initial public offering of a new series of perpetual preferred stock under the ticker SATS. The objective of the offering is to raise $500 million through the sale of 5 million shares at an offering price of $100 per share.

The most notable aspect of Strive’s prospectus is the committed yield: SATS shares will pay a fixed annual dividend of up to 15% of stated value, distributed on a daily basis. In terms of priority, this new class of shares will rank junior to the company’s existing SATA perpetual preferred shares, which currently pay a floating dividend of around 13% per year.

Dividend reserve structure and capital for Bitcoin accumulation

To bolster confidence among institutional investors participating in the offering, Strive committed to establishing a reserve fund covering the full cost of dividend payments for the first 18 months for SATS shares immediately upon completion of the issuance. All net proceeds from the offering are planned to be used flexibly for three primary purposes: purchasing additional Bitcoin to strengthen its treasury, acquiring cash-flow-generating assets, or executing share buybacks of the company’s own stock on the open market.

Strive’s pace of Bitcoin accumulation in recent times has surpassed many industry peers. Just in the week prior to the announcement, the company purchased an additional 3,311 BTC, bringing its total holdings to 32,773 BTC with an estimated value of around $2.7 billion. Notably, just three months ago, the company’s Bitcoin reserve still sat below the 20,000 BTC threshold.

Trade-off between capital leverage and cash flow payout pressure

Strive’s capital-raising model reflects a distinct approach compared to companies like Strategy (formerly MicroStrategy). Instead of issuing low-interest convertible bonds or diluting common equity, Strive chooses to create attractive fixed-income products to draw capital seeking high daily yields, and then uses that funding as leverage to accumulate Bitcoin over the long term.

However, the commitment to pay a fixed 15% annual dividend represents a significant financial burden. Although Strive has an 18-month reserve fund in place, this strategy still requires its supporting income-generating asset portfolio to produce sufficiently strong cash flows, or the cryptocurrency market to maintain a steady upward trend to offset the expensive cost of capital. The true test for Strive will emerge if the market cycle enters a prolonged period of subdued volatility after the 18-month buffer is depleted.