Key Takeaways
- • Strategy (Nasdaq: MSTR) has submitted a proposal to pay daily dividends on its 12% STRC preferred stock to an extraordinary shareholders meeting on Oct. 28, 2026.
- • Strive (Nasdaq: ASST) raised about $630 million by issuing 15% SATS preferred at $90 per share, an effective yield of 16.7% based on the issue price.
- • Strategy's annual dividend and interest burden of $1.76 billion equals roughly 2.6% of its Bitcoin holdings' value, assuming an $80,000 Bitcoin price, while Strive's $105 million SATS dividend equals about 3.7% of its Bitcoin value.
- • Dividends are funded by pre-accumulated reserves, new share issuance and Bitcoin sales rather than operating profit, so the payouts depend on continued fundraising and Bitcoin price appreciation.
- • SATS ranks behind SATA and all debt, and dividends are paid only if the board declares them, leaving holders exposed to significant risk.
Summary
U.S.-listed companies holding large Bitcoin reserves are offering high-yield preferred stock paying 12% to 15% annually and pitching daily dividend payments, according to the original report. Strategy, the largest corporate Bitcoin holder among listed companies, has put a proposal for daily dividends on its 12% STRC preferred to an Oct. 28 shareholder meeting. Strive, ranked fourth by Bitcoin holdings, has been paying cash dividends on its 12% SATA preferred every business day since June and finalized terms for its 15% SATS preferred, raising about $630 million. SATS issued 7 million shares at $90 apiece, bringing the total to about $700 million, with net proceeds of about $609 million after underwriting fees and other costs.
The report argues that the dividends are not funded by operating profit. Strategy's disclosed annual preferred dividends and debt interest total about $1.76 billion, against roughly $2.55 billion in dollar reserves, about 17.4 months' worth as of the end of June. Those reserves include cash raised from common stock sales. Strategy has also adopted a rule allowing it to sell up to $1.25 billion of Bitcoin to top up reserves or pay dividends and interest. Strive will set aside $157.5 million, or 18 months of SATS dividends, in advance, but said dividends beyond that period will require additional fundraising.
Assuming a Bitcoin price of $80,000, Strategy's 848,250 coins are worth about $67.9 billion, and Strive's 36,818 coins are worth about $2.8 billion. Because part of the payouts is covered by new share issuance, Bitcoin holdings do not shrink by the full ratio immediately, but a weaker price or insufficient appreciation would make the burden heavier. STRC has traded below its $100 par value since May and fell as low as $71 in June. Strategy's stated goals for the daily dividend structure are price stability, liquidity and broader demand for the preferred. Receiving dividends daily does not increase the total received, since Strategy's November STRC dividend is $1 per share either way.
Risk factors include the fact that both companies pay dividends only when their boards declare them. SATS is cumulative, but payment delays remain possible, and SATS ranks behind SATA and all debt. Strive Chairman and CEO Matt Cole called the offering a key step toward maximizing long-term returns for common shareholders, and the company plans to use proceeds for Bitcoin purchases, working capital, income-producing assets, capital expenditures and buybacks. Strive held $317.5 million in cash equivalents as of Oct. 16, and its advisory affiliate Strive Asset Management manages more than $2.8 billion. The report concludes that the outcome of Strategy's Oct. 28 meeting and changes in each company's reserve disclosures will be the market's next focal points.
The report argues that the dividends are not funded by operating profit. Strategy's disclosed annual preferred dividends and debt interest total about $1.76 billion, against roughly $2.55 billion in dollar reserves, about 17.4 months' worth as of the end of June. Those reserves include cash raised from common stock sales. Strategy has also adopted a rule allowing it to sell up to $1.25 billion of Bitcoin to top up reserves or pay dividends and interest. Strive will set aside $157.5 million, or 18 months of SATS dividends, in advance, but said dividends beyond that period will require additional fundraising.
Assuming a Bitcoin price of $80,000, Strategy's 848,250 coins are worth about $67.9 billion, and Strive's 36,818 coins are worth about $2.8 billion. Because part of the payouts is covered by new share issuance, Bitcoin holdings do not shrink by the full ratio immediately, but a weaker price or insufficient appreciation would make the burden heavier. STRC has traded below its $100 par value since May and fell as low as $71 in June. Strategy's stated goals for the daily dividend structure are price stability, liquidity and broader demand for the preferred. Receiving dividends daily does not increase the total received, since Strategy's November STRC dividend is $1 per share either way.
Risk factors include the fact that both companies pay dividends only when their boards declare them. SATS is cumulative, but payment delays remain possible, and SATS ranks behind SATA and all debt. Strive Chairman and CEO Matt Cole called the offering a key step toward maximizing long-term returns for common shareholders, and the company plans to use proceeds for Bitcoin purchases, working capital, income-producing assets, capital expenditures and buybacks. Strive held $317.5 million in cash equivalents as of Oct. 16, and its advisory affiliate Strive Asset Management manages more than $2.8 billion. The report concludes that the outcome of Strategy's Oct. 28 meeting and changes in each company's reserve disclosures will be the market's next focal points.
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