Strive may use cash for $500M SATA buyback, cut dividends

Strive opened an optional program on Oct. 5 to repurchase up to $500 million of its variable-rate perpetual preferred stock, traded as SATA. The program ceiling exceeds the company’s reported cash balance of $284.7 million as of Oct. 2.

The SEC filing gives management discretion to buy SATA shares from time to time but does not specify a funding source, a timetable or any completed repurchases. The $500 million cap is about $215.3 million higher than the reported Oct. 2 cash balance, so using the full capacity immediately would require resources beyond that dated balance. The filing notes the facility is optional and does not create an obligation to spend the full amount.

SATA’s amended terms show an annualized dividend of $13 per share based on a $100 stated amount, equal to 13% annually. Dividends accrue even when not declared, and declared cash payments are distributed across business days. As of Oct. 2, the company reported 13,498,082 SATA shares outstanding, up from 12,193,180 on Sept. 25, reflecting recent issuance activity through its disclosed cutoff for share sales.

Retiring SATA shares would lower the number of dividend-bearing preferred claims that rank ahead of common shareholders and could reduce future dividend cash outflows depending on how many shares are repurchased and the prevailing dividend rate. Cash used to buy back preferred stock would not be available to acquire additional Bitcoin.

On the crypto holdings side, Strive reported 29,462 BTC as of Oct. 2 after buying about 2,000 bitcoins between Sept. 28 and Oct. 2 at an average price near $84,422, including fees and expenses. The company also provided preliminary, unaudited Sept. 30 figures showing roughly 28,000 BTC, subject to change.

SATA’s amended terms permit market repurchases separate from contractual optional redemptions, which carry a base price of $110 per share plus any unpaid dividends. The repurchase program does not fix repurchases at the $110 contractual level and allows purchases at market prices.

The filing states Strive intends to remain debt-free and may consider different capital-allocation or financing alternatives. Investors will look for later disclosures showing actual repurchase spending, the number of SATA shares retired, and updated cash and Bitcoin balances.