Strive Increases Annualized Preferred-Dividend Burden by $12 Million Amid Bitcoin Purchases

Bitcoin treasury company Strive added almost $12 million to its annualized preferred-dividend burden in one week as its SATA preferred share count grew, according to calculations using its Sept. 8 disclosure.

At the current rate, the larger share base implies about $130 million in yearly payouts, while higher cash left static cash-only coverage almost unchanged.

SATA is variable-rate perpetual preferred equity, and each additional share increases the estimated recurring payout at the current 13% dividend rate.

The company reported buying 1,375 BTC during the Aug. 31-Sept. 4 period at an average price of approximately $79,281 per coin, including fees and expenses. That brought its holdings to 24,531 BTC as of Sept. 4.

Over the week from Aug. 28 to Sept. 4, SATA shares rose from 9,073,914 to 9,995,425, an increase of 921,511. Strive’s table includes shares sold by its stated 4 p.m. cutoff that would be issued on the following business day, alongside shares already outstanding.

A larger payout, almost the same coverage

Strive’s board maintained the annual rate at 13% in an Aug. 13 announcement, effective for periods beginning Sept. 1. Applied to SATA’s $100 stated amount per share, that equates to $13 annually.

Multiplying both reported share counts by $13 gives annualized dividends of $129.9 million for Sept. 4, versus nearly $118 million for Aug. 28. The roughly $12 million increase is a desk calculation at the same current rate.

For September, the board declared $0.0516 per share on each of 21 business-day payment dates, payable to holders of record at the preceding business day’s close. Payments depend on eligible shares on those record dates.

Cash and cash equivalents rose by $19.1 million over the week, from $183.5 million to $202.6 million. Dividing each cash balance by its current-rate annualized dividend estimate and multiplying by 12 produces coverage of 18.71 months for Sept. 4, against 18.67 months for Aug. 28.

That static ratio excludes operating needs, future financing, investment income, and other liquid assets. Among the excluded holdings were 505,000 shares of Strategy’s STRC preferred stock, valued at $49.364 million on Sept. 4.