If a company issues preferreds at $95 when par is $100, it receives $95 million in proceeds but commits to dividends calculated on $100 par value. For STRC’s 10% yield, that means $10 million annually on $95 million received, or a 10.53% effective cost of capital rather than the stated 10%.
Strive’s figures tell a similar story. The company recently raised $225 million in SATA — upsized from $150 million after receiving a staggering $600 million in orders — yet the security now trades at $89.
Issuing preferred equity at $89 receives $89 million in proceeds but commits to perpetual dividends based on $100 par value. For SATA, that's $12.25 million annually on $89 million received — 13.76% effective cost of capital rather than the marketed 12.25%. Basically, the spread between Bitcoin’s expected returns and the true cost of capital narrows uncomfortably.
These economics force difficult decisions. Issue at below-par prices and accept higher effective costs, or pause issuance and potentially miss attractive opportunities to accumulate Bitcoin at favorable entry prices.

It appears SATA has an uphill battle!!

STRC’s return to $100 demonstrates that sub-par pricing can quickly reverse.
While the security traded below par, Strategy paused issuance, and markets eventually repriced STRC back to par. Whether this pattern can come true for SATA, or whether the 11% discount persists, will provide an important data point on how different preferred structures and company profiles affect secondary market pricing.
Several factors could explain pricing differences between securities at any given moment. For starters, market structure and liquidity matter. Established securities with broader holder bases may sustain tighter trading ranges than newer offerings.
Time in the market could also play a role. STRC benefits from Strategy issuing Bitcoin-backed instruments across multiple market environments, while SATA continues to operate as a newer instrument. Yield spreads reflect risk assessments that markets continuously update.