SATS Stock's 15% Yield Could Drive Net BPS Accretion for Strive

Strive's recently listed SATS perpetual preferred stock presents an opportunity for the entity: it could issue equity at a price above its $100 notional amount and boost Net Bitcoin Per Share (Net BPS) in every subsequent round, within the risks and constraints outlined below.

The piece explains the mechanics and the rationale. The central issue is whether the market price of SATS will surpass $100. The instrument's comparatively high 15% fixed dividend makes that result, together with the accretion that follows, more realistic.

Why SATS could trade above par

SATS provides an annual dividend of $15 per share, reflecting the 15% rate on the $100 notional. It sits below Strive's SATA preferred in seniority, yet its dividend setup offers shareholders two notable characteristics.

For one, the dividends are cumulative. Strive can delay disbursements, but any outstanding dividends collect as a formal debt to the preferred shareholders.

Second, the $15 dividend is fixed. This sets it apart from SATA, which currently yields an annualized $13 per share but comes with a variable dividend rate. SATA investors could thus see lower income in the future if Strive cuts the rate. SATS dividends accumulate at a stable $15 per annum, but are payable only "when, as and if" declared by Strive's board, and may be postponed.

These characteristics could render SATS particularly appealing to investors looking for consistent, extended income streams.

Consider Strategy's STRD, the firm's most junior preferred instrument. STRD currently changes hands at roughly $71, a 29% discount from its $100 notional. The fixed $10 yearly dividend equates to an effective yield of 14%. STRD dividends are non-cumulative, which means Strategy can miss payments without building a liability to pay them later.

Admittedly, the Bitcoin asset coverage behind STRD is substantially stronger than what backs SATS. STRD's 4.7x Bitcoin rating is twice as high as SATA's, which is Strive's most senior instrument.

That being said, numerous income-oriented investors might prioritize dividend dependability over coverage ratios. SATS provides cumulative dividends and a clearly higher stated yield, building a persuasive argument for the market to demand a lower effective yield than STRD.

For instance, if the effective yield on SATS is 13%, the market price would be $115.38.

This unlocks a financing opportunity for Strive.

The Net Bitcoin Per Share opportunity

Suppose SATS trades at $115 and Strive goes to market to issue another 1 million shares through an ATM program.

Strive would collect $115 million in gross proceeds and deploy it into Bitcoin.

However, beneath a Net BPS methodology that subtracts preferred stock at its $100 notional, these new shares generate merely $100 million in fresh preferred claims.

The leftover $15 million moves straight into the calculation of net Bitcoin that goes to common shareholders.

Under this framework, Strive effectively obtains $115 of capital for every $100 in preferred notional. The yearly dividend holds at $15, yielding an effective financing cost of 13.04% on the capital.

Strive can realize this accretion without creating more common shares.

One caveat exists: SATS carries a floating liquidation preference that changes with recent market prices. At a trade price of $115, the preference can move toward $115, temporarily enlarging the economic claim of preferred shareholders. It can also decline. The calculation uses the previous trading day's close near issuance and the average close over the last 10 trading days, with a floor of $100. If SATS later trades at $100 for 10 trading days, the preference falls back to $100.

While the stock exceeds par, the elevated preference cancels out some or all of the apparent accretion. Once the preference moves back to $100, Strive keeps the added capital raised above par while the preferred claim shrinks to its stated amount.

The exact liquidation preference figure is only consequential in a liquidation, which would occur only in bankruptcy. In bankruptcy, the preferred price would almost certainly fall below $100, pulling the preference back to $100. So the floating preference caveat is largely irrelevant in context—$100 per share is perfectly sound as the de facto notional to compute Net BPS. (Note that Net BPS is a Strategy definition, not a metric Strive itself publishes. Strive's prospectus warns of tax risks, such as deemed distributions and disqualified preferred stock treatment, when shares issue above the liquidation preference.)

The above-par issuance premium can thus turn into authentic residual asset value for common shareholders when evaluated through the Net BPS metric.

This is likely a key motive for Strive's choice of 15%. The high dividend raises the probability of trading above par and triggering the mathematically certain Net BPS accretion described.

15% Cost of Capital?

The strategy naturally depends on where the market prices SATS.

At $115, Strive essentially obtains capital at a 13% yearly dividend cost. At $100, that figure climbs to 15%. At $90, the effective cost reaches 16.67%, and issuance turns dilutive under Net BPS.

Strive must therefore apply considerable restraint when issuing SATS through an ATM program. Tying up mid-to-high-teen capital costs is viable only if the returns from Bitcoin are huge and volatility drag does not become a major problem.

Strive also plans to hold an 18-month dividend reserve of $22.50 for each SATS share, introducing another capital allocation factor.

If Strive keeps 18 months of dividend coverage, it must set aside $22.50 per share sold. Selling at par means 22.5% of the proceeds must sit in cash equivalents, while the balance of 77.5% goes into Bitcoin. Consequently, the true capital cost—factoring in the drag of only 77.5% being deployable—exceeds the effective yield at issuance.

All of these factors call for careful management.

The key question

SATS could rank as one of the most costly digital credit instruments by stated dividend, even as it becomes one of the more appealing financing tools for the Net BPS measure.

If investors consistently assign SATS an effective yield under 15%, Strive can issue shares above par, buy more Bitcoin, and potentially create Net BPS accretion under this framework.

If SATS has difficulty keeping a premium, the situation described would not apply.

The opportunity resides in the spread between the $100 stated amount and the price income investors will pay for a fixed, cumulative $15 yearly dividend.

This spread could develop into a valuable accretion source for ASST shareholders.

Disclaimer: Strive, the issuer of the securities, is a member of Bitcoin for Corporations and pays membership fees to that entity. Strive did not review this text before it was published. Allard Peng is the author, and the piece conveys his own opinion. All scenarios, costs, and yields here are hypothetical illustrations, not forecasts or assurances. The "Net Bitcoin Per Share" concept is the author's own methodology, not a metric Strive reports. Third-party data comes from 21 October 2026, sourced from Strategy.com and Strive.com.

This content is purely informational. It is not investment, legal, or tax guidance, nor is it an offer or solicitation to trade any security. SATS Stock is available only through Strive's prospectus supplement and accompanying prospectus; these documents, including the risk factors, should be read before any investment. Investing in preferred stock and bitcoin-linked securities carries significant risk, including principal loss and the chance that dividends are not declared or paid.