Strive's Preferred Share Count Surges, Boosting Dividend Burden
Strive, a Bitcoin treasury company, has added $12 million to its annualized preferred-dividend burden in just one week. This increase is due to the issuance of nearly one million new SATA (variable-rate perpetual preferred equity) shares.
The larger share base implies about $130 million in yearly payouts at the current 13% dividend rate. Strive's board maintained this rate in an August announcement, effective for periods beginning September 1.
Over the week from August 28 to September 4, SATA shares rose from 9,073,914 to 9,995,425, an increase of 921,511. The company used these new funds to buy 1,375 BTC at an average price of approximately $79,281 per coin, including fees and expenses.
Cash and cash equivalents also rose by $19.1 million over the week, from $183.5 million to $202.6 million. However, this increase in cash did not significantly impact the company's coverage ratio, which remains near 18 months.