Strive's SATA preferred stock now carries a 13% dividend rate, implying roughly $101.8 million in annualized payouts against $154.9 million of cash on hand. The Bitcoin treasury company has covered the gap so far through common-share sales rather than touching its BTC, though its own filings flag a token sale among the risks to meeting future cash-dividend obligations.
A senior claim ahead of common shareholders
Strive has retired its conventional notes, but its capital structure still carries a large senior claim ahead of common stock. SATA is perpetual preferred equity rather than conventional debt, and its cumulative cash dividends rank ahead of Strive's common shares.
The company had 7,829,502 SATA shares outstanding at June 30, representing a $782.95 million stated amount and about $783 million of aggregate liquidation preference, according to its Aug. 10 quarterly filing.
The math behind the $101.8 million run rate
Strive's board maintained SATA's variable dividend rate at 13% for periods beginning on or after Aug. 1. Applying that rate to the unchanged June 30 share count produces roughly $101.8 million of annualized dividends — a desk calculation, not company guidance, that will change if Strive adjusts the rate or issues more preferred shares.
Against the $154.9 million of cash and cash equivalents Strive reported as of Aug. 7, that run rate implies about 18.3 months of cash-only coverage. The ratio is static rather than a forecast, and it excludes operating needs, other liquid investments, new financing, and any change to SATA's rate or share count.
Strive reported $26.2 million of preferred dividends for the second quarter, but that figure was not all cash paid during the period. Its statements show about $22.4 million of Q2 cash payments, while preferred dividends payable increased by roughly $3.8 million.
Common shares, not Bitcoin, have funded the gap so far
Strive held $42.9 million of Strategy's STRC preferred stock at fair value as of June 30, alongside 19,864 Bitcoin. By Aug. 7, its Bitcoin holdings had increased to 20,167 after it acquired 303 Bitcoin, and the company said the holdings were unencumbered. No post-quarter Bitcoin sale was disclosed in the filings reviewed through Aug. 10.
Instead, Strive has leaned on common equity. From July 1 through Aug. 7, the company sold 3,415,998 Class A shares for $43 million in gross proceeds, issuing no SATA shares under its amended sales agreement during that stretch. Its Class A at-the-market program had about $2.12 billion of remaining capacity.
Other levers carry constraints. Strive can reset SATA's rate, but reductions face a SOFR-linked floor and other conditions. It can generally redeem SATA at $110 or more plus accumulated unpaid dividends, an option that itself requires cash rather than removing the funding need. Strive's annual report also warns that Bitcoin or related products could be sold to meet future cash-dividend obligations; that is a risk disclosure rather than a stated plan.
If SATA issuance under the amended sales agreement does not resume, recent evidence points first to further common issuance, since Strive has already used that channel. A rate change or a Bitcoin sale remains conditional, while renewed preferred demand would reopen another funding path and ease the company's reliance on common sales or its Bitcoin reserve.
Source: CryptoSlate
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