Strive offers a 16.7% effective yield to raise $630 million of preferred stock at $90 a share

The cost to Strive is 15% on paper, or rather 16.7%, because the dividend accrues on a $100 stated amount ^[4] while the shares sold at $90 ^[1][13]. That is $15 a share ^[14], and across 7 million shares it comes to $105 million a year ^[15].

In Bitcoin terms, Strive's most recent purchase of 2,822 BTC for about $235 million implies roughly $83,300 a coin ^[11][19]. At that price the $630 million gross would buy about 7,565 BTC, or 21% of the 35,595 BTC Strive already holds ^[20][21], and a year of dividends would cost about 1,260 BTC ^[22]. Those figures assume every dollar goes into coin. The stated use of proceeds allows that, but it also lists working capital, income-generating assets and repurchases of Class A common stock or SATA ^[9].

The $630 million is before underwriting discounts and expenses ^[3], so the cost on net proceeds is above 16.7%. Separately, the reserve top-up of $22.50 on a $90 share is 25 cents of every dollar raised ^[17].

Crypto Briefing wrote that the 40% upsizing suggests the book was well oversubscribed ^[23]. That may be so. A fixed coupon on a bigger deal shows that 16.7% cleared 7 million shares; it does not show the lowest yield that would have cleared 5 million.

The outcome could differ in several directions. SATS could trade above $100, in which case a new buyer's yield is below 15% and $90 looks cheap ^[4]. Strive could send more of the money to SATA or common repurchases than to coin ^[9]. Bitcoin could simply outrun the coupon.

In our view the 16.7% prices Strive's Bitcoin exposure and SATS's junior rank ^[7] together, and the sources do not separate them: they give no rate for SATA and no yield from any other treasury issuer, so this is a single issuer's price. Strive has described Bitcoin as its hurdle rate for deploying capital ^[10]. On that standard the raise adds value for common holders only if the coin bought returns more than 16.7% a year, and flat Bitcoin leaves the dividend as the whole cost.

The counter-thesis is time. Dividends are paid only if declared ^[5] and the reserve is sized for the first 18 months ^[6], so Strive has a long runway before Bitcoin's path forces a decision. We would be wrong if SATS trades above $100, or if Bitcoin returns more than 16.7% a year on what Strive buys.