Strive announces $500 million buyback program exceeding cash reserves

Strive disclosed a program to repurchase up to 500 million dollars of its variable-rate perpetual preferred stock, SATA, on Oct. 5. This program surpasses its reported cash balance of 284.7 million dollars, allowing management to consider further Bitcoin purchases against retiring dividend-paying preferred shares. The SEC filing grants management discretion for share repurchases, with a ceiling of 215.3 million dollars above the cash reported on Oct. 2, necessitating resources beyond that balance for immediate full use. The program does not obligate Strive to spend the maximum amount and does not indicate a liquidity shortfall. As of Oct. 2, Strive held 29,462 BTC after acquiring 2,000 Bitcoin at an average price of approximately 84,422 dollars. Strive's preferred-funded Bitcoin strategy incurs recurring cash costs, with SATA dividends at 13 dollars per share annually, equivalent to 13% of the stated amount. The company reported 13,498,082 SATA shares as of Oct. 2, an increase from 12,193,180 shares on Sept. 25. Retiring shares could lower future dividend commitments, depending on the number of shares retired and the applicable dividend rate. Strive aims to remain debt-free and may explore capital-allocation and financing options. The next key disclosures for common shareholders will include actual repurchase spending and shares retired, along with updated cash and Bitcoin balances.

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