SATS Preferred Offering Prices At $90, Raising About $630M

Strive sold more of its new SATS preferred stock than it first planned, and it sold the shares below their stated amount. The deal priced on October 15 at $90 a share. Settlement is set for October 20, according to the 8-K the company filed afterwards. The SATS preferred offering grew by 2,000,000 shares on the way.

The pricing release, filed as Exhibit 99.1 to Strive's Form 8-K. Source: SEC EDGAR.

The SATS preferred offering price and size

Strive says the deal should bring in about $630 million before fees, which fits 7,000,000 shares at that price. TOCE's earlier piece, SATS preferred stock: Strive plans 15% sale, 18-month reserve, covered a plan for 5,000,000 shares.

Barclays and Cantor Fitzgerald are the joint book-running managers named in the underwriting agreement. The SATS preferred offering uses an effective shelf registration statement on Form S-3ASR. Buyers get terms through a prospectus supplement and an accompanying prospectus.

What $90 does to the yield

The stock pays cumulative dividends at 15.00% a year on a stated amount of $100 per share. That is $15 a share each year. Bought at $90, the same $15 equals a yield of about 16.7% on the price paid.

That figure is simple arithmetic and not a forecast. Dividends are payable only when the board declares them, and only out of funds the law allows. Regular dividend dates fall on each business day, beginning November 9, 2026.

If the first payment is declared in full, it will carry all accrued and unpaid dividends from the closing date onward. The release uses the word cumulative, so missed payments stay on the books.

Reserve and redemption terms of the SATS preferred offering

At closing, Strive says it intends to increase its existing dividend reserve by the first 18 months of payments. It puts that at the equivalent of $22.50 a share. The company will fund it from cash on hand and securities it holds.

If the $22.50 applies to all 7,000,000 shares sold, the reserve would grow by about $157.5 million. The release does not state the total reserve after closing. TOCE has not seen a figure for it in the filing.

The reserve and redemption paragraphs of the pricing release. Source: SEC EDGAR.

Strive can redeem all of the SATS stock for cash, but not part of it. That right applies if the outstanding count falls under 25% of everything issued. It can also redeem if certain tax events occur.

Holders have a right of their own after a fundamental change. They can require Strive to repurchase shares at the stated amount plus unpaid dividends.

Where the money may go

Strive lists general corporate purposes first. That includes buying bitcoin and bitcoin-related products, working capital and income-generating assets. It also names buybacks of its Class A common stock or its variable-rate SATA preferred, and possible acquisitions.

Nothing in the release commits a set share of the proceeds to bitcoin.

This article reports the pricing terms in the filing. It does not forecast how SATS will trade after settlement or what Strive will buy with the proceeds.