Strive CEO Matt Cole initiated a poll on X on June 30, seeking shareholder input on whether to temporarily halt the issuance of new SATA preferred shares at a face value of $100 per share and instead let the market determine the liquidation price, provided that this move is in shareholders' long-term best interests. The direct trigger for this move: short positions in SATA increased by approximately 1 million shares over the past 30 days.
SATA's Automatic Issuance Mechanism: $100 Trigger Condition and Short Arbitrage Logic
SATA pays a daily adjustable dividend, with a current annualized yield of approximately 13%, designed to keep the market price close to $100. Under the current issuance mechanism, when the stock price hits $100, Strive has the right to issue new shares at $100, effectively creating an upper price cap.
In his poll post, Cole explained that some investors believe Strive will always issue new shares at $100, providing short sellers with a risk-free arbitrage opportunity when the stock price approaches $100. Cole stated that SATA's long-term face value target remains at $100, and retaining issuance flexibility will increase the cost and risk of shorting SATA.
SATA completed its IPO between November 5 and 10, 2025, with an initial price of $80 per share, selling a total of 2 million shares and raising between $149 million and $160 million. Proceeds were directly used to establish Strive's Bitcoin treasury.
Specific Poll Question on Cole's X Platform and Recent Market Data
Cole's poll question: Do shareholders agree to temporarily stop the issuance of new SATA shares at $100 per share and let the market determine the liquidation price? Cole provided the following current market data in his post:
Increase in short positions over the past 30 days: Approximately 1 million shares
Current borrowing cost: Annualized approximately 70%
SATA's recent low (late June 2026): Just above $90, followed by a rebound
Frequently Asked Questions
Why does Strive choose to fund Bitcoin purchases via SATA rather than traditional debt?
Strive raises funds by selling SATA to directly buy Bitcoin, offering an annualized floating dividend of approximately 13% as a reward for holding SATA. This structure has no fixed maturity and does not generate repayment obligations typical of traditional debt. As of late June 2026, Strive held approximately 19,864 Bitcoins through this mechanism.
Under what conditions does SATA's $100 face value trigger automatic issuance?
When SATA's market price reaches $100 per share, Strive has the right to issue new shares at $100. Cole stated that this mechanism gives short sellers an effective arbitrage cap when the stock price approaches $100, which is the direct reason for launching this poll.
When will the results of Cole's X poll be announced, and are they legally binding?
As of now, Strive has not officially announced the poll results or a timeline for a final decision. Cole stated that this poll aims to gather market feedback, and the final decision must align with shareholders' long-term best interests. Strive has not announced any legal requirement for the board to adopt the poll results.
