Strive Launches $1 Billion Preferred-Stock Sales Program With Bitcoin Among Planned Uses

Strive Inc. established a program on Monday, October 26, that would allow it to sell as much as $1 billion of its 15.00% Series A Perpetual SATS Preferred Stock over time. The arrangement gives the bitcoin-focused financial company another potential source of capital less than a week after it completed the initial public offering of the same preferred shares.

The $1 billion figure is a ceiling on future sales, not an amount Strive has already received. The company can decide when and whether to issue shares under the program. It has named bitcoin and bitcoin-related products among the possible uses of the proceeds, but has not committed a specified amount of the program to cryptocurrency purchases.

In its October 26 announcement, Strive said the shares may be sold through an at-the-market arrangement under an existing securities registration. The latest prospectus supplement was filed with the Securities and Exchange Commission the same day, and the company said the underlying shelf registration became effective in September 2025.

How the preferred-stock sales program works

An at-the-market program allows a company to place shares with investors from time to time instead of selling a fixed quantity in a single underwriting. Strive retains control over whether to proceed with sales. Its October 26 regulatory filing says it has no obligation to sell shares, and it may suspend or end the arrangement.

Seven firms are acting as sales agents: Cantor Fitzgerald, Barclays Capital, Clear Street, StoneX Financial, B. Riley Securities, Maxim Group and H.C. Wainwright. They can sell shares as agents or principals using permitted methods, including market sales. The agreement provides for commissions of up to 2% of the gross proceeds from each sale, in addition to certain reimbursable expenses.

Those fees are one reason the $1 billion maximum should not be confused with cash available for spending. The actual net proceeds will depend on how many shares Strive sells, the prices obtained and expenses incurred. There is no minimum amount the company must raise, and the prospectus does not establish a schedule for reaching the full authorization.

The securities involved are SATS preferred shares, which trade on Nasdaq under the ticker SATS. They are distinct from Strive’s Class A common shares, which trade as ASST, and its Variable Rate Series A Perpetual Preferred Stock, traded as SATA. Adding more SATS shares would expand the amount of preferred equity outstanding rather than directly issuing additional ASST common shares.

SATS carries a 15% cumulative annual dividend rate calculated on a $100 stated amount per share. That works out to $15 a year per share at the stated rate, regardless of the market price paid for the security. The preferred stock is perpetual, so it has no scheduled maturity at which Strive must repay principal. Cash dividend payments still depend on declaration by the board and the applicable legal conditions.

Bitcoin is one permitted use, not an earmarked $1 billion purchase

Strive’s intended uses of net proceeds cover more than expanding its bitcoin treasury. The company also identified working capital, purchases of income-generating assets and other capital expenditures. It may use the money to repurchase its Class A common stock or SATA preferred stock, or to buy businesses, assets and technologies that complement its operations.

Other possible uses include preferred-stock cash dividends and repayment of future indebtedness. Management has broad discretion over the allocation, meaning proceeds could be split among several purposes or directed toward one priority as conditions change. Nothing in the announcement fixes a bitcoin purchase target or requires sales under the program to be followed immediately by cryptocurrency purchases.

The reference to bitcoin is consistent with Strive’s existing treasury strategy. In its October 26 prospectus supplement, the company reported holding approximately 43,000 bitcoin as of October 23. Those holdings had an aggregate cost of about $3.8 billion and a fair value of roughly $3.5 billion. Strive also reported $504.4 million in cash and cash equivalents and Strategy preferred shares with a fair value of about $50.2 million.

Those balance-sheet figures establish the scale of Strive’s existing exposure; they do not show how proceeds from a program announced three days later will be deployed. Its asset-management subsidiary is a separate operating component, managing more than $2.8 billion in client assets, according to the company. That business helps explain why the stated uses of cash extend beyond buying bitcoin.

Bitcoin itself does not make contractual interest payments. Purchasing more of it can increase potential gains if its price rises, but cannot by itself generate the regular cash needed for preferred dividends. Strive would have to rely on available liquidity, operating revenue, asset sales or other sources to meet those payments. That distinction matters because the new financing adds securities with dividend rights even though the company’s principal treasury asset has no predictable cash yield.

The new authorization follows a $630 million SATS offering

On October 20, Strive closed an upsized initial public offering of seven million SATS shares at $90 each, equivalent to $630 million in gross proceeds before underwriting costs and other expenses. The company announced that the security would begin trading on Nasdaq under SATS on or around the closing date. The new at-the-market plan is a separate route for potential future issuance, not a restatement of the completed offering.

Regular dividend payment dates for SATS fall on each business day, starting November 9, 2026. Strive has already declared a first payment of $0.8710 a share for November 9 to holders of record November 6, along with payments of $0.0658 a share for each business day from November 10 through November 30. The company also established a dividend reserve at the IPO closing, setting aside an amount equivalent to the first 18 months of dividends on the shares then issued. The reserve does not remove the need to monitor Strive’s longer-term ability to fund the dividend.

Holders of SATS stand ahead of the company’s common shareholders for dividends and liquidation distributions, but behind holders of SATA and any future indebtedness. Preferred-stock investors therefore have a different claim on Strive’s assets from common shareholders, and the fixed stated dividend rate should not be mistaken for a guaranteed investment return. SATS can still fluctuate in market value, particularly if interest rates or perceptions of Strive’s credit quality change.

Issuing more SATS shares can increase the aggregate dividend claims on the company and expand the available supply of the security. The prospectus also warns that future issuance of preferred stock ranking equally with or ahead of SATS could affect existing holders. For common shareholders, the central question is whether the capital Strive raises earns enough over time to justify the additional preferred claims and any associated costs.

Strive says it will report at least quarterly the number of SATS shares sold under the agreement and the net proceeds received. Those filings, rather than the $1 billion maximum alone, will establish how much capital the program actually provides.