Strive Inc's SATA count implies US$175.5M annualized payout

A week of preferred issuance added 1,304,902 SATA shares, lifting the illustrative annual distribution by about US$17 million at the Oct. 5 indicated rate. Strive, Inc. NASDAQASST NASDAQSATA, a Dallas bitcoin treasury and structured finance company, reported 13,498,082 preferred shares outstanding on Oct. 2, up from 12,193,180 on Sept. 25. The comparison depends on a variable rate and board-declared payments.

The Oct. 5 SEC report put cash and cash equivalents at US$284.7 million and bitcoin holdings at 29,462 on Oct. 2. Strive's SATA terms page showed an annualized US$13 distribution per share as of the Oct. 5 market close. Applied to the Oct. 2 count, that rate implies about US$175.5 million a year if both rate and count held steady.

Strive's NASDAQASST common shares closed at US$30.03 at 4 p.m. EDT on Oct. 2. Its NASDAQSATA preferred shares closed at US$99.96 at 4 p.m. EDT on Oct. 2. Those closes predate the Oct. 5 report and cannot measure the market's response to its share-count update.

At Sept. 30, the filing recorded US$1.294 billion of SATA stated amount and zero debt principal. The same table listed US$168.228 million as an annualized interest obligation, Strive's label for its preferred-stock cost. The later Oct. 2 share count increases the illustrative amount at the Oct. 5 rate, without fixing the rate or the cash the board will declare.

SATA Preferred Shares Increased Through The Week

At Sept. 30, Strive had 12,940,621 SATA shares outstanding, between its Sept. 25 and Oct. 2 snapshots. The company's table associated its annualized obligation with preferred stock while listing zero debt principal. That distinction keeps a preferred distribution estimate separate from interest on a bank loan.

At the Oct. 5 annualized US$13 rate, the Sept. 30 count implies US$168.228 million a year, matching Strive's reported obligation after rounding. The Sept. 25 count implies about US$158.5 million, while the Oct. 2 count implies about US$175.5 million. Their roughly US$17 million difference is an annualized estimate, not cash paid during that week.

"Current rate is not indicative of future rate, which is subject to adjustment and may be significantly lower. Cash dividend is subject to declaration by Strive's board of directors and is not guaranteed," Strive says on its SATA page.

Strive describes SATA as variable-rate perpetual preferred stock and says it pays cash distributions each business day when its board declares them. Its terms page dates the first payment to June 16. A daily payment schedule does not guarantee future declarations at the same rate.

Cash And Bitcoin Balances Rose Together

Between Sept. 25 and Oct. 2, Strive's filing shows cash rising by US$35.9 million to US$284.7 million. Over that same interval, bitcoin holdings climbed from 27,462 to 29,462. Strive said it bought 2,000 bitcoin from Sept. 28 through Oct. 2 at an average US$84,422 per coin, including fees and expenses.

Those dated balances describe what Strive held at each snapshot; they do not by themselves trace the source of cash used for the bitcoin purchase. At Sept. 30, its table valued 28,000 bitcoin at US$2.340 billion and recorded US$284.722 million of cash. The preferred stated amount was US$1.294 billion on the same date.

The illustrative US$175.5 million annual distribution at Strive's Oct. 5 rate is about 62 per cent of its Oct. 2 cash balance. That comparison uses a single cash snapshot and holds the rate and preferred count fixed. It does not project a cash runway, because subsequent financing, asset purchases and board declarations can change the calculation.

The filing also put effective common shares at 100,938,986 on Oct. 2, up from 97,651,721 on Sept. 25. Class A shares climbed to 91,708,804 from 88,453,685 in that interval, while Class B shares increased to 9,230,182 from 9,198,036. Both classes enter the effective common count, the denominator for Strive's bitcoin-per-share comparisons. Mugglehead's earlier report on the 2,000-bitcoin purchase and rising common and preferred counts examined that common-share denominator. The annualized SATA calculation adds a separate measure of the preferred distribution exposure attached to the larger treasury.

Read more: Strive Inc adds US$169M in bitcoin as common and preferred share counts grow

Strive's fiscal year ends Dec. 31, according to the SEC filing index. Any published dividend-rate decision or preferred-share update before then could change the illustrative US$175.5 million figure.