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Strive is sitting on a problem. The Bitcoin treasury company is paying out a 13% annual dividend on its SATA preferred equity, and the math on how long it can actually cover that in cash is getting uncomfortable.
By the end of June, Strive had 7,829,502 SATA shares outstanding, carrying a liquidation preference of roughly $783 million. At a 13% dividend rate — which the board locked in for periods starting on or after August 1 — the annualized dividend obligation comes out to around $101.8 million. The company had $154.9 million in cash and equivalents as of August 7. Do the division and you get about 18.3 months of runway. And that’s before you account for any operating costs, changes in share count, or shifts in the SATA rate itself.
Cash Burn and the Bitcoin Question
During the second quarter, Strive paid out $26.2 million in dividends. Most of that — $22.4 million — went out as actual cash, with the rest recorded as payable increases. The company also shifted its payment schedule in June to a daily basis, which tracks changes in the eligible share count. It’s a small operational detail, but it says something about how closely Strive is managing the mechanics of this thing.
The big question everyone’s circling is Bitcoin. Strive held 20,167 Bitcoin as of August 7, up 303 from the end of June. Those holdings are unencumbered, per recent filings. The company’s own annual report mentions that Bitcoin or related products might be sold to meet future cash-dividend obligations. Strive is careful to frame that as a risk disclosure, not a plan. But the distinction matters less when the cash runway is 18 months and the dividend clock is ticking daily.
It’s not confirmed. It’s probably not imminent. But it’s on the table.
Common Stock Sales and SATA Constraints
So what’s Strive actually doing right now? Selling Class A shares. Between July 1 and August 7, the company raised $43 million in gross proceeds by selling 3,415,998 Class A shares through its at-the-market program. No new SATA shares were issued during that stretch, per the amended sales agreement. The ATM program still has approximately $2.12 billion in remaining capacity, so there’s room to keep pulling that lever.
Strive also holds $42.9 million in Strategy’s preferred stock as of the end of June. That’s another asset on the balance sheet, though it’s not cash.
The SATA structure itself is tricky to unwind. The company can technically adjust the dividend rate, but there’s a SOFR-linked floor that limits how far down it can go. Redeeming SATA shares is an option too, but redemption requires cash payments of $110 or more per share, plus any accumulated unpaid dividends. That’s a heavy cash ask, and it doesn’t necessarily fix the underlying funding problem — it just converts one obligation into another.
So the levers exist. They’re just expensive or constrained.
What’s Keeping This Afloat
Common equity sales are basically the main engine right now. The $43 million raised from Class A shares is the clearest sign of where Strive is leaning. And with $2.12 billion still available under the ATM program, there’s theoretical capacity to keep doing that for a while.
The scenario that probably helps most is renewed demand for preferred shares. If investors come back to SATA, Strive can issue new preferred equity and use those proceeds to cover dividends without touching Bitcoin or diluting common shareholders further. But demand for preferred shares isn’t guaranteed, especially if the market starts pricing in the Bitcoin liquidation risk more aggressively.
There’s also the rate question. A lower SATA dividend rate would reduce the annual cash obligation significantly — $101.8 million is a big number for a company with $154.9 million in the bank. But the SOFR floor means Strive can’t just cut the rate to whatever it wants. The floor is real, and it bites.
The company’s Bitcoin stack grew by 303 coins between late June and early August, which is worth noting. Strive isn’t running down the reserve yet — it’s still adding. But the annual report disclosure about potential Bitcoin sales isn’t boilerplate. It’s there because the scenario is plausible enough to warrant disclosure.
Strive raised $43 million from Class A shares while holding 20,167 Bitcoin and watching a $101.8 million annual dividend obligation compound daily.
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Frequently Asked Questions
How much cash does Strive have to cover its SATA dividends?
As of August 7, Strive had $154.9 million in cash and equivalents, which covers roughly 18.3 months of its approximately $101.8 million annualized SATA dividend obligation, excluding operating costs and other variables.
Does Strive plan to sell Bitcoin to pay dividends?
Strive’s annual report mentions potential Bitcoin sales to meet cash-dividend obligations, but the company frames this as a risk disclosure rather than a confirmed strategy; as of early August, its 20,167 Bitcoin holdings remained unencumbered.
