A 13% dividend is set to force another Bitcoin treasury company into the unthinkable: liquidating its BTC to pay cash

Strive, a Bitcoin treasury company, has retired its conventional notes, but its capital structure still carries a large senior claim ahead of common shareholders.

SATA is perpetual preferred equity rather than conventional debt. Its cumulative cash dividends rank ahead of Strive’s common stock. The company had 7,829,502 SATA shares outstanding at June 30, representing a $782.95 million stated amount and approximately $783 million of aggregate liquidation preference, according to its Aug. 10 quarterly filing.

Strive’s board maintained SATA’s variable dividend rate at 13% for periods beginning on or after Aug. 1. Applying that rate to the unchanged June 30 share count produces roughly $101.8 million of annualized dividends. The figure is a desk calculation, not company guidance, and will change if Strive adjusts the rate or issues more preferred shares.

Against the $154.9 million of cash and cash equivalents Strive reported as of Aug. 7, that run rate implies about 18.3 months of cash-only coverage. The ratio is static, not a forecast of when Strive will exhaust its cash. It excludes operating needs and inflows, other liquid investments, new financing ,and changes to SATA’s rate or share count.

Strive reported $26.2 million of preferred dividends for the second quarter, but the filed figure was not all cash paid during the period. The company’s statements show about $22.4 million of Q2 cash payments, while preferred dividends payable increased by roughly $3.8 million. Together, the figures reconcile to approximately $26.2 million after rounding.

The distinction also makes the quarterly total a poor proxy for a full-quarter run rate. SATA’s regular payment schedule shifted from monthly to each business day on June 16, and the eligible share count changed as Strive issued shares during the quarter. The June 30 share count therefore cannot reconstruct the quarter’s aggregate payments by itself.

Strive held $42.9 million of Strategy’s STRC preferred stock at fair value as of June 30, alongside 19,864 Bitcoin. By Aug. 7, its Bitcoin holdings had increased to 20,167 after it acquired 303 Bitcoin, and the company said the holdings were unencumbered. No post-quarter Bitcoin sale was disclosed in the filings reviewed through Aug. 10.

The company has already raised more common equity. From July 1 through Aug. 7, Strive sold 3,415,998 Class A shares for $43 million in gross proceeds, while issuing no SATA shares under its amended SATA sales agreement during that period. Its Class A at-the-market program had about $2.12 billion of remaining capacity.

Other levers carry constraints. Strive can reset SATA’s rate, but reductions face a SOFR-linked floor and other conditions. It can generally redeem SATA at $110 or more plus accumulated unpaid dividends, an option that requires cash rather than removing the funding need. Strive’s annual report also warns that Bitcoin or related products could be sold to meet future cash-dividend obligations, though that is a risk disclosure rather than a stated plan.

If SATA issuance under the amended sales agreement does not resume, recent evidence points first to common issuance because Strive has already used it. A rate change or Bitcoin sale remains conditional. Renewed preferred demand would reopen another funding channel and reduce the company’s reliance on common sales or its Bitcoin reserve.

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