Strive faces $102M dividend bill that could force Bitcoin sale

Strive faces a roughly $101.8 million annual preferred dividend bill that its $154.9 million cash pile covers for only about 18 months.

The obligation stems from SATA, Strive's perpetual preferred equity, whose cumulative cash dividends rank ahead of common stock, according to the company's Aug. 10 quarterly filing.

Strive had 7,829,502 SATA shares outstanding at June 30, a $782.95 million stated amount and roughly $783 million of aggregate liquidation preference. The board kept the variable dividend rate at 13 percent for periods on or after Aug. 1, producing the annualized figure — a desk calculation, not company guidance.

If preferred issuance does not resume, Strive's recent $43 million common-stock raise points to dilution before any Bitcoin sale, though its annual report warns the reserve could be tapped to meet cash-dividend obligations.

Cash covers 18 months at the current run rate

The static ratio excludes operating needs and inflows, other liquid investments, new financing, and changes to SATA's rate or share count. Strive reported $26.2 million of preferred dividends for the second quarter, but that filed figure was not all cash paid during the period. Statements show about $22.4 million of Q2 cash payments, while preferred dividends payable rose roughly $3.8 million, reconciling to the quarterly total after rounding.

The quarterly total is also a poor proxy for a full-quarter run rate. SATA's regular payment schedule shifted from monthly to each business day on June 16, and the eligible share count changed as Strive issued shares during the quarter.

Common issuance has become the funding channel

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 filings reviewed through Aug. 10.

From July 1 through Aug. 7, Strive sold 3,415,998 Class A shares for $43 million in gross proceeds, while issuing no SATA shares under its amended sales agreement. 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 requires cash rather than removing the funding need. The annual report also warns that Bitcoin or related products could be sold to meet future cash-dividend obligations, though that is a risk disclosure rather than a stated plan.

If SATA issuance does not resume, recent evidence points first to common issuance because Strive has already used it. A rate change or Bitcoin sale remains conditional. Renewed preferred demand would reopen another funding channel and reduce reliance on common sales or the Bitcoin reserve.

The pressure on Strive echoes a broader shift in how Bitcoin treasury companies fund themselves. MARA Holdings this month pledged 18,750 Bitcoin to secure $600 million in term loans from Coinbase Credit and Two Prime Lending rather than sell the asset, according to the lenders. For Strive, the choice between dilution and selling its reserve will hinge on whether preferred investors return — a decision that determines whether the company keeps its 20,167 Bitcoin intact.

This article is for informational purposes only and does not constitute investment advice.