Strive Issues Nearly 1M SATA Shares, Adds ~$12M Dividend Burden

Strive issued 921,511 SATA preferred shares during the week ended Sept. 4, increasing the company’s SATA count to 9,995,425 from 9,073,914 a week earlier.

The board kept the SATA dividend rate at 13% effective for periods beginning Sept. 1. SATA carries a $100 stated amount per share, which equates to $13 annually per share. Multiplying the reported share totals by $13 produces an annualized dividend estimate of about $129.9 million on Sept. 4 versus roughly $118 million on Aug. 28, an $11.98 million increase at the same rate.

Strive’s filing reports shares sold by its 4 p.m. cutoff that would be issued on the following business day alongside shares already outstanding. SATA is a variable-rate perpetual preferred security, so each additional share increases the company’s recurring dividend obligation at the current rate. For September the board declared $0.0516 per share on each of 21 business-day payment dates, payable to holders of record at the preceding business day’s close; actual payments depend on which shares are eligible on those record dates.

Cash and cash equivalents rose from $183.5 million to $202.6 million over the same week, an increase of $19.1 million. Using the current-rate annualized dividend estimates, Strive’s cash-only coverage was 18.71 months on Sept. 4 versus 18.67 months on Aug. 28. That cash-only calculation excludes operating needs, future financing, investment income and other liquid holdings.

The filing excluded 505,000 shares of Strategy’s STRC preferred stock, which were valued at $49.364 million on Sept. 4, from that simple coverage calculation. The disclosure did not allocate the recent Bitcoin purchases to specific financing sources.

During the Aug. 31–Sept. 4 period Strive bought 1,375 BTC at an average price of about $79,281 per coin, including fees and expenses. That purchase increased the company’s Bitcoin holdings to 24,531 BTC as of Sept. 4.

The filing states the company’s recurring preferred dividend obligation will grow with any further SATA issuances unless the board reduces the rate or the share count falls. Future changes in SATA share count, the board-set dividend rate and the company’s cash balance will determine whether cash-only coverage remains at current levels.