Strive’s newly IPO’d SATS perpetual preferred stock introduces an interesting opportunity: the company could potentially issue preferred equity above its $100 stated amount and grow Net Bitcoin Per Share (Net BPS) in each issuance round, subject to risks and parameters described below. 

This article discusses how and why it works. The key question is whether SATS will trade above $100. Its unusually high 15% fixed dividend makes that outcome, and the subsequent accretion, plausible.

Why SATS could trade above par

SATS carries a fixed annual dividend of $15 per share, based on its $100 stated amount and its 15% number. It ranks junior to Strive’s SATA preferred stock,…

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