A 12% yield in crypto-land without touching a token? That’s the pitch Strive is floating to markets with its new preferred stock, a move designed to raise non-dilutive capital to buy more Bitcoin while stabilizing funding costs. With common shares trading below the value of its BTC stack, Strive is copying a proven playbook from MicroStrategy’s capital structure wizardry—only this time with a variable-rate, monthly cash dividend and a targeted trading band.

What just happened

Strive (Nasdaq: ASST) plans to sell 1.25 million shares of its Series A Variable Rate Perpetual Preferred (SATA) with an initial 12% annual dividend, paid monthly in cash. Proceeds are earmarked to acquire more BTC, expand operations, and potentially fund income-generating assets, working capital, or buybacks of common stock.

In a nod to MicroStrategy’s financing tactics, Strive says it will adjust SATA’s dividend within preset limits to keep the preferred trading in a $95–$105 range. If dividends go unpaid, the rate compounds monthly and can step up to as high as 20% annually. Barclays and Cantor Fitzgerald are joint bookrunners; Clear Street is co-manager. A $12/share dividend reserve will be set aside to cover year one.

Why traders should care

- Strive’s common stock trades at a discount to the BTC on its balance sheet (sub-1 mNAV), making common issuance dilutive; preferreds offer a cleaner capital path. - The structure may attract yield-focused capital while keeping crypto beta; think equity-like upside for common holders if BTC rallies and funding costs stay controlled. - SATA’s variable-rate design aims to stabilize the preferred’s price—effectively letting management trade dividend rate for market price stability.

Key risks to price and yield

- BTC drawdowns could pressure coverage of cash dividends, raising the odds of rate step-ups toward 20%—a signal of stress rather than “free yield.” - Liquidity risk in a new preferred series may widen bid-ask spreads; price support relies on management’s ability to flex the rate. - The pending merger with Semler Scientific (SMLR) would roughly double BTC holdings (~6,000 to ~11,000 coins), but timeline and terms are execution risks. - Macro tightening or credit spread widening could reprice the required yield higher, pressuring SATA and ASST.

Actionable playbook

• Event trade: Track SATA pricing, prospectus details (rate caps/floors, covenants, priority), and allocation. Volatility in ASST common is likely into and after the bookbuild.
• NAV discount watch: If ASST’s discount to BTC widens on the deal, a relief rally post-pricing is possible. Monitor mNAV vs. BTC beta on the day of allocation.
• Yield arbitrage lens: Compare SATA’s running and step-up yields to high-yield/convertible comps and to BTC funding rates. Mispricings can emerge early in new issues.
• Risk hedge: Preferred buyers can consider partial BTC delta hedges if they want to isolate yield from crypto price swings, mindful of borrow and basis costs.
• Liquidity prep: Set alerts for SATA around $95–$105. If the band is tested, watch for management’s dividend adjustments and order book depth before stepping in.

Bottom line

Strive’s SATA is a bold attempt to finance more Bitcoin with a market-friendly income instrument instead of diluting common equity. For traders, the setup offers a fresh yield vehicle tied to BTC treasury strategy, plus a potential rerating catalyst for ASST’s discount—balanced by execution, liquidity, and crypto-cycle risks. First read the final terms; then plan your hedge, your entry, and your exit.

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