Strive Increases Dividend Burden by $12 Million After Buying Bitcoin

Strive, a Bitcoin treasury company, has reported a significant increase in its preferred-dividend obligations, adding almost $12 million in just one week. This change follows the issuance of nearly one million new SATA preferred shares, which are designed to finance the company's Bitcoin acquisitions.

According to Strive's disclosure on September 8, the total number of SATA shares rose from 9,073,914 to 9,995,425, reflecting an increase of 921,511 shares. This growth in share count implies an annualized payout of approximately $130 million at the current 13% dividend rate. Each SATA share has a stated amount of $100, resulting in an annual dividend of $13 per share.

During the period from August 31 to September 4, Strive purchased 1,375 BTC at an average price of around $79,281 per coin, bringing its total Bitcoin holdings to 24,531 BTC. The company's cash reserves also increased by $19.1 million, rising from $183.5 million to $202.6 million, which helps maintain a coverage ratio of about 18.7 months for its dividend obligations.

Strive's approach to financing its Bitcoin acquisitions through SATA preferred stock has positioned it as a significant player in the corporate Bitcoin treasury market. Despite holding fewer Bitcoin than competitors like Metaplanet, Strive's market capitalization has surpassed that of its rival, indicating investor confidence in its growth strategy.