Bitcoin News
By Dan Saada
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Cash Burn and the Bitcoin Question. During the second quarter, Strive paid out $26.2 million in dividends. Most of that — $22.
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Common Stock Sales and SATA Constraints. So what's Strive actually doing right now? Selling Class A shares.
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What's Keeping This Afloat. Common equity sales are basically the main engine right now.
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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…
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By the end of June, Strive had 7,829,502 SATA shares outstanding, carrying a liquidation preference of roughly $783 million.
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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.
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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.
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It's not confirmed. It's probably not imminent. But it's on the table.
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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…
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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.
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See also: Bitcoin BIP-110 Chain Dies at Two Blocks as 99.85% of Hashpower Rejects Fork
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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.
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So the levers exist. They're just expensive or constrained.
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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.
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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…
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