Strive Issues New Preferred Shares to Buy 1,375 Bitcoin
Strive expands Bitcoin treasury with new share issuance
Strive, a Bitcoin treasury company, increased its annual dividend obligations by approximately $12 million after issuing nearly one million new preferred shares to purchase more Bitcoin. Between August 31 and September 4, the company bought 1,375 Bitcoin (BTC), the world's most well-known digital currency.
The company acquired the new Bitcoin at an average price of $79,281 per coin, including fees. This purchase brings Strive’s total holdings to 24,531 BTC. To fund these activities, the company grew its SATA preferred share count by 921,511 shares in a single week.
Key figures from the financial disclosure
- Total Bitcoin holdings: 24,531 BTC as of September 4.
- New Bitcoin purchased: 1,375 BTC.
- Total SATA shares: Increased from 9,073,914 to 9,995,425.
- Estimated annual dividends: Rose from $118 million to $129.9 million.
- Cash reserves: Increased by $19.1 million to a total of $202.6 million.
Details from the official SEC filing
According to reports filed with the Securities and Exchange Commission (SEC), SATA is a type of preferred equity with a variable dividend rate. Strive's board maintained the current annual dividend rate at 13%. Based on a $100 stated value per share, this means the company pays out $13 annually for each share.
For the month of September, the company declared a daily payment of $0.0516 per share on each of the 21 business days. These payments are distributed to shareholders who own the stock at the close of the previous business day.
What is confirmed about Strive’s financials
Calculations based on the company's September 8 disclosure confirm that the larger share base has increased the total annual payout to approximately $130 million. While the dividend burden has grown, the company's cash and cash equivalents also rose to $202.6 million during the same period.
The company also holds other liquid assets that are not included in its basic cash-only coverage calculations. This includes 505,000 shares of Strategy’s STRC preferred stock, which was valued at over $49 million as of September 4.
Why the dividend coverage matters
The relationship between cash reserves and dividend obligations helps show how long a company can sustain its payouts. Strive currently has enough cash to cover its estimated annual dividends for approximately 18.7 months. This ratio remained steady despite the increase in shares because the company’s cash reserves grew alongside its dividend debt.
Future changes to the dividend rate or the amount of cash on hand will determine if this balance can be maintained. The company has not specified exactly how much of its recent Bitcoin purchase was funded by the new share issuance versus other sources.
