The hidden trade behind Strive’s 16.7% Bitcoin income offer

There's a Bitcoin company that's now offering investors a 15% annual dividend, paid in small installments every business day.While a 15% dividend is high enough to grab everyone's attention, the more revealing number is what buyers agreed to pay for it.On Oct. 15, Strive priced seven million shares of its new SATS preferred stock at $90 apiece, despite each share carrying a $100 stated amount and a $15 annual dividend. That puts the implied cash yield at 16.7% for someone buying at the offering price.The upsized offering is expected to raise $630 million before expenses, with settlement scheduled for Oct. 20. Strive will use the proceeds to acquire Bitcoin, support its business, buy income-generating assets, or repurchase other shares.The eye-popping yield makes the product easy to advertise and sell. However, it doesn't tell us what an investor bought for $90, or what that investment would be worth if they needed their money back.A $100 claim is not a $100 exitSATS is preferred stock, which means its owners are in a different position from shareholders who buy Strive's ordinary stock.Common shareholders receive whatever value remains after the company satisfies its liabilities and...