13% Preferred Dividend Could Force Strive to Sell Bitcoin

Strive’s 13% SATA perpetual preferred dividend implies roughly $101.8 million in annual payments, based on 7,829,502 SATA shares outstanding at June 30 and a $782.95 million stated amount. SATA is structured as perpetual preferred equity with cumulative cash dividends that rank ahead of common stock in the capital structure. The board maintained SATA’s variable dividend rate at 13% for periods beginning on or after Aug. 1; applying that rate to the June 30 share count produces the annualized figure.

The company reported $154.9 million of cash and cash equivalents as of Aug. 7. Comparing that cash balance to the implied annual dividend yields a static coverage of about 18.3 months. That calculation is a snapshot and does not account for operating cash needs, other liquid investments, asset sales, new financing or any future changes to SATA’s rate or share count.

Strive reported $26.2 million of preferred dividends for the second quarter. The filing shows about $22.4 million was paid in cash during Q2 while preferred dividends payable rose by roughly $3.8 million. The company changed SATA’s payment schedule from monthly to each business day on June 16, and the eligible share count changed during the quarter, so the June 30 share count does not reconstruct the quarter’s total cash payments on its own.

From July 1 through Aug. 7, Strive sold 3,415,998 Class A shares for about $43 million in gross proceeds. The company did not issue SATA shares under its amended SATA sales agreement in that period. The Class A at-the-market program had roughly $2.12 billion of remaining capacity as of the filing.

Other financing levers have constraints. SATA’s dividend rate can be reset, but reductions face a floor tied to SOFR and other conditions. SATA can be redeemed at $110 per share or higher plus accumulated unpaid dividends, but redemption requires cash. The company’s annual report discloses that Bitcoin or related products could be sold to meet future cash-dividend obligations; the filing presents that as a potential funding path rather than a stated plan.

Strive reported 19,864 BTC at June 30 and said holdings increased to 20,167 BTC by Aug. 7 after acquiring 303 BTC. The filing noted those coins were unencumbered. No post-quarter Bitcoin sale was disclosed in filings reviewed through Aug. 10.

No SATA issuance from July 1 to Aug. 7, the common share sales during that period, the constraints on rate reductions and redemptions, and the company disclosures on Bitcoin sales are documented in Strive’s recent filings. Continued use of common equity sales, a change to SATA’s rate, or a sale of Bitcoin would alter Strive’s liquidity profile and the priority of payments to preferred and common shareholders.