SATA: Strive's Variable Preferred Stock

Important Disclosures

This profile has been prepared by True North Research, a media and research subsidiary of Strive, Inc. (“Strive”). It summarizes certain publicly available information and internal calculations relating to Strive’s Variable Rate Series A Perpetual Preferred Stock (“SATA”) and Strive’s balance sheet, and is part of Strive’s broader “Digital Credit” educational initiative. It is for informational and educational purposes only, is provided on a non-independent basis, and should not be relied upon as a complete or current description of SATA, Strive, Strategy, or any offering.

This content does not constitute an offer to sell or a solicitation of an offer to buy any security, nor does it constitute investment, legal, accounting, or tax advice. It does not take into account the objectives, financial situation, or needs of any particular investor. Investors should make their own independent evaluation of any securities and consult their own advisers. Any offer or sale of securities will be made only by means of the applicable offering documents and SEC filings, including those available on SEC EDGAR.

Because True North is a Strive subsidiary, Strive and its personnel have an economic interest in the trading price and liquidity of SATA and other Strive securities. Strive, its affiliates, and their respective officers, directors, and employees may hold positions in the securities discussed. This creates actual and potential conflicts of interest that readers should carefully consider.

Instrument Overview

SATA is Strive’s (Nasdaq: ASST) variable-rate perpetual preferred stock.

As of the date of this profile, it is the only Digital Credit instrument in this category not issued by Strategy. Within the Digital Credit framework used by True North, SATA has, at times, offered among the highest stated yields in the category based on publicly available disclosures and market pricing at the time of analysis.

Strive priced the initial SATA offering on November 5, 2025 at $80 per share, with the deal oversubscribed and upsized from 1.25 million to 2.0 million shares. Monthly dividends are cumulative, with unpaid amounts compounding up to a 20% annual cap as set out in the Certificate of Designations.

As of Strive’s April 2026 8-K, the stated dividend rate on SATA is 13.00% per year, effective April 15, 2026 (raised from 12.75%). SATA shares outstanding total approximately 4,275,118 (~$427.5M notional) based on issuer filings and True North calculations. Strive reports holdings of approximately 13,311 BTC, described as fully unencumbered following the payoff of a Coinbase loan.

At a March 16 market price of $97.75, the effective yield on SATA is approximately 13.30% at the new 13.00% stated rate using True North’s methodology (par value, current rate, and market price). This figure is illustrative and will change with price, rate, and tax treatment.

In simple terms, SATA is a preferred equity instrument designed to generate monthly income, with returns influenced by both issuer decisions—such as dividend rate adjustments—and broader Bitcoin market conditions that affect Strive’s balance sheet.

This profile applies the same general analytical approach True North uses for other Digital Credit instruments but is not “independent research” under applicable regulations. Calculated metrics are produced using the methodology described in our Digital Credit Methodology and may differ from issuer, analyst, or third-party estimates.

Key Terms

Certain values in this table are based on True North’s reading of Strive’s SEC filings and may differ from other summaries; investors should rely on the actual governing documents.

One nuance worth surfacing: “perpetual” does not mean non-callable. The Certificate of Designations allows Strive to redeem SATA at $110 plus accrued dividends, which effectively caps upside if the shares trade materially above par.

Rate History

Over its first six months, Strive has raised the SATA rate four times. The April 15, 2026 rate increase lifts the indicated monthly dividend to $1.0833 per share, consistent with a 13.00% annualized rate on $100 par. The April 15 dividend of $1.0625 reflected the prior 12.75% rate.

Policy Guidance vs. Legal Terms

Strive has publicly indicated a target trading range for SATA, narrowing from $95–$105 at launch to $99–$101 as of March 2026, and has stated that it does not intend to issue new SATA via at-the-market (“ATM”) or follow-on offerings below $100.

These are current management policies and may change without notice. They are not covenants and do not modify the Certificate of Designations, which still permits rate adjustments and additional issuances subject to its terms.

Investors should not rely on target price ranges, issuance intentions, or similar policies as binding obligations. The only legally enforceable rights and protections are those set out in the Certificate of Designations and other governing documents, as filed with the SEC.

How It Works in Practice

Dividend mechanics. Monthly dividends are declared by Strive’s board and paid in cash out of legally available funds. The variable rate has been described by the issuer as a tool intended to support trading near par. At a 13.00% annual rate on $100 par, the indicated monthly dividend is $1.0833 per share, assuming dividends continue to be declared at the current rate.

Cumulative compounding protection. SATA includes a cumulative compounding structure that differs from many traditional cumulative preferred terms. If dividends go unpaid, the accumulated balance compounds monthly with the rate stepping up toward a 20% annual cap. This structure creates a higher economic cost to prolonged non-payment for the issuer. These features do not eliminate default risk but may influence issuer incentives in stress scenarios.

Tax treatment. Strive has indicated that SATA dividends are currently expected to qualify as return of capital, with classification determined annually based on earnings and profits. As disclosed, Strive has no accumulated E&P and does not expect near-term current E&P, but final tax characterizations are determined through the reporting process and may differ from expectations. Preliminary tax characterizations should not be treated as guarantees.

What SATA is not. SATA is not legally secured by Strive’s Bitcoin holdings; holders have only a preferred claim on residual assets. The variable rate can move lower as well as higher at the board’s discretion within the terms of the Certificate. SATA is managed-duration preferred equity in a Bitcoin-backed balance-sheet structure, not a bond with hard collateral and a fixed maturity.

Capital Structure Position and Coverage

Strive’s capital structure is relatively simple compared with Strategy’s:

• Debt (approximately $10M remaining)
• SATA (this preferred stock)
• Common equity (ASST)

There is a single preferred instrument, minimal debt, and no internal preferred stack to navigate. All 13,311 BTC reported by Strive are fully unencumbered following the payoff of a Coinbase loan.

Using Strive’s disclosed Bitcoin holdings and a reference BTC price of approximately $74,712 as of March 16, 2026, True North estimates Bitcoin net asset value (“BTC NAV”) at roughly $994M.

On that illustrative basis, BTC NAV covers approximately 2.27× the combined principal amount of SATA (~$427.5M) and approximately $10M of debt. It would equate, on a simplified and static basis, to roughly 18 years of SATA dividend payments at the current rate.

These figures are simplified analytical metrics for context only. They are not projections or guarantees, and actual outcomes will depend on Bitcoin prices, financing decisions, operating results, tax matters, and other factors.

Reserve structure. Strive has disclosed an 18-month SATA dividend reserve structure consisting of approximately 12 months in cash and cash equivalents and 6 months in Strategy’s STRC preferred stock (~$50M). This reserve is not a segregated trust or contractual backstop; its size, composition, and value may change.

A portion of SATA’s defensive capacity is therefore another issuer’s preferred stock rather than cash or Bitcoin, which may introduce correlation considerations in stress scenarios.

Who This Instrument May Suit

SATA has characteristics that may be relevant to investors who:

• Seek higher current stated yield with monthly cash distributions and are comfortable with exposure to a smaller, Bitcoin-concentrated issuer
• Prefer a simpler, single-preferred capital structure
• Value cumulative dividend structures with compounding features
• Want exposure outside Strategy’s preferred stack, while recognizing some indirect exposure via reserve assets

SATA may be less aligned with the objectives of investors who:

• Prioritize issuer scale and balance-sheet depth
• Require deep secondary-market liquidity
• Prefer more senior positioning within a larger capital structure
• Are not comfortable with Bitcoin-linked balance sheet exposure

These observations are general and do not constitute a recommendation. Each investor must determine suitability based on their own circumstances.

Key Risks Specific to SATA

Issuer scale and drawdown sensitivity. Strive’s smaller Bitcoin position implies a thinner buffer in severe drawdowns. Under an illustrative 60% Bitcoin price decline, BTC-only coverage would compress meaningfully. These figures illustrate sensitivity and are not predictions of default.

Single-instrument issuer. Strive currently offers one preferred instrument, limiting intra-issuer positioning flexibility.

Policy risk is not covenant protection. Public guidance does not modify legal rights under governing documents.

Reserve composition and correlation. Exposure to STRC introduces cross-issuer sensitivity.

Secondary-market depth. Smaller notional and trading volume may result in wider spreads under stress.

Affiliation and conflicts. True North is not independent; conflicts of interest are present and should be considered.

Current Data Snapshot (Illustrative; Refresh on Publication Day)

These data are snapshots and may become inaccurate quickly. Calculated metrics are analytical tools, not projections or guarantees.

The higher stated yield reflects market pricing that may incorporate factors such as issuer size, concentration, liquidity, and perceived risk. That trade-off may be attractive for certain risk profiles, but it is not equivalent to low risk, and outcomes remain sensitive to Bitcoin price dynamics and issuer-specific decisions.

→ Full instrument comparison: Markets & Instruments → Scenario analysis and stress testing: Risk Analysis → How we analyze: Methodology

This content is provided by True North, a subsidiary of Strive. It reflects current views as of the date indicated and may change without notice. No representation or warranty is made as to accuracy or completeness. Any investment involves risk, including possible loss of principal. Historical or current metrics should not be viewed as assurances of future results.