Strive, a Bitcoin treasury company, disclosed an optional $500 million repurchase program for its variable-rate perpetual preferred stock (SATA) on October 5, according to regulatory filings. The ceiling exceeds the company’s reported cash balance of $284.7 million as of October 2 by $215.3 million.
The repurchase program is optional and creates no obligation to spend the maximum amount. Strive did not disclose a dedicated funding source, timetable, or the number of shares repurchased to date under the program.
Recent Bitcoin Purchases and Holdings
Between September 28 and October 2, Strive purchased 2,000 Bitcoin at an average price of approximately $84,422 per coin, including fees and expenses. As of October 2, the company held 29,462 BTC, up from a preliminary unaudited 28,000 BTC as of September 30.
During the same period, Strive’s SATA share count increased to 13,498,082 as of October 2, from 12,193,180 as of September 25. SATA trades with a stated amount of $100 per share and carries an annualized dividend of $13 per share, equivalent to 13% of the stated amount.
Capital Allocation Trade-offs
Retiring preferred shares through buybacks could reduce Strive’s future dividend commitments and preferred claims that rank ahead of common shareholders. However, capital deployed toward SATA repurchases would not be available for additional Bitcoin purchases.
“Strive says it intends to remain debt-free and may consider capital-allocation and financing alternatives,” according to the company’s filing.
SATA’s amended terms permit market repurchases separately from contractual optional redemption, which carries a base price of $110 per share plus unpaid dividends. Strive cautioned that Bitcoin-per-share metrics do not capture additional senior claims created when preferred issuance funds Bitcoin purchases.
Disclosure and Uncertainty
The filing discloses no completed SATA repurchases, dedicated funding mechanism, or execution timeline for the $500 million program. Strive also did not specify the dividend rate applicable to future repurchases or the purchase price per share for market buybacks.
