Bitcoin Treasury Firm Strive’s Preferred Shares Yield Up to 15.9%. What Is the Catch?

Strive (NASDAQ: ASST), a company that holds Bitcoin as its main asset, offers effective yields of up to 15.9% on its preferred stock. On November 9, 2026, Strive announced on X a distribution of $0.0516 per share on its SATA preferred stock, its 108th consecutive dividend payment. That amounts to an annual dividend of about $13, for an effective yield of 13.5%.

Strive’s newer SATS preferred stock paid its first dividend of $0.871 per share, which annualizes to about $15 and an effective yield of 15.9%.

Bitcoin (CRYPTO: BTC) trades at $73,227, down 2.6% over the past 24 hours and 12.5% over the last 30 days. For comparison, the 10-year Treasury yielded 4.84% on November 5, the same benchmark used to size up Ethereum staking. So what must buyers of Strive’s preferred stock accept to earn such high returns?

SATA and SATS Pay Cash From Share Sales Because Bitcoin Pays Nothing

Preferred stock pays a set dividend and ranks higher than common stock but lower than any debt. Strive’s preferreds are perpetual, so they never repay the original investment. SATA has a variable dividend rate set by Strive’s board, and it has paid daily cash dividends at a 13% annualized rate since June 16. SATA has traded close to its $100 par value, which has helped keep Strive’s funding open.

On the other hand, SATS pays a fixed, cumulative dividend set at 15% of a $100 stated amount. Cumulative means that if a dividend is missed, it piles up as an obligation Strive must clear before common stockholders get paid. SATS ranks below SATA when dividends are paid. Matt Cole, who was chairman and CEO during the offering, argued that SATS adds junior capital beneath SATA and strengthens Strive’s creditworthiness.

However, neither preferred stock guarantees a dividend. SATS dividends depend on the board declaring them from legally available funds, and the board can also lower SATS’s rate. Since Bitcoin earns no interest or rental income, dividend cash must come from other sources.

Strive owns Strive Asset Management, which manages over $2.8 billion, as well as the Clinivanta healthcare unit acquired with Semler Scientific. Still, Strive buys Bitcoin mainly by selling new shares, including SATA, and its latest quarterly 10-Q filing showed $490 million in cash while listing dividend obligations and dilution from new share sales as risks. The dividend terms only require Strive to pay cash, and they don’t require it to buy or hold Bitcoin.

A 15.9% Yield Next to a 4.84% Treasury Is a Warning Sign

When markets demand yields as high as Strive’s 15.9%, it usually signals higher perceived risk. SATS trades around $95 and SATA near $97, both below the $100 amount their dividends are based on. If investors believed these shares were as safe as Treasuries, their prices would likely be above $100.

Bitcoin is the main source of that risk. As of November 7, Strive’s common stock was valued at about $2.53 billion, compared to roughly $3.27 billion in Bitcoin held. Since the common stock is worth less than the Bitcoin, each new common share sold dilutes existing shareholders, making preferred shares Strive’s cleanest way to raise capital.

If Bitcoin’s price keeps dropping, preferred stockholders still rank ahead of common stockholders. However, they are relying on a company whose main asset is losing value. Preferred shares could fall while yields climb, and selling more SATS could become harder. In August, Cole said Strive has no debt and no Bitcoin pledged as collateral, meaning lenders can’t force it to sell Bitcoin.

Strategy Runs the Same Model on a Much Bigger Balance Sheet

Strategy Inc. (NASDAQ: MSTR | MSTR Price Prediction) uses a similar model. Its STRC preferred shares pay 12% and trade just below $100, so Strategy has been buying them back to support their price.

Strategy’s financials show the same strain. Its software business generated $125 million in third-quarter revenue, but it needed $420 million to meet preferred dividend obligations, so it sold Bitcoin to cover the shortfall. S&P gives Strategy a speculative-grade B-rating, while an investment-grade rating would let pension funds and insurance companies invest more freely.

What Is the Catch Behind Strive’s Preferred Stock?

The catch is that buyers are financing a Bitcoin treasury at dividend rates the board can cut or skip, and the dividends depend on Strive’s ability to keep selling shares. With Bitcoin falling, keeping those dividends funded could get harder. In October, Strive bought 15,124 Bitcoin at about $83,310 each, and those coins are now worth about 12.1% less than Strive paid.

While the dividends provide cash flow to preferred holders, they don’t create new demand for Bitcoin, and Strive’s purchases add demand only on the days it buys. If SATS slips toward its $90 IPO price, 5.3% below its level near $95, or Strive’s next filing shows fewer than the 43,153 BTC it reported on November 9, the funding model is likely under strain.

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