Strive CEO Matt Cole is confident in his company's ability to continue paying dividends, even if Bitcoin enters a prolonged downturn. The firm has increased its cash reserves from 12 to 18 months, a strategy designed specifically to cover the variable dividend payments associated with its SATA preferred stock during a bear market as severe as the 2022-2023 decline.
#What is SATA and Why is the Reserve Important?
SATA refers to Strive's Variable Rate Series A Perpetual Preferred Stock, available on the Nasdaq under the ticker ASST. This instrument is marketed as a way to gain Bitcoin exposure while earning income, all with potentially less volatility compared to holding Bitcoin directly. Currently, SATA trades between $99 and $101 and provides a variable dividend yield of about 13% annually. As of June 16, 2026, the payment structure will transition to daily payments, enhancing liquidity for investors.
Cole’s reasoning is straightforward. The longest bear market for Bitcoin occurred between 2022 and 2023, during which the price plummeted from around $69,000 to less than $16,000, a period lasting under 18 months. By maintaining a reserve sufficient to cover dividends for this entire duration, Strive aims to reassure shareholders that it will not be forced to sell Bitcoin at unfavorable prices to meet payment obligations. The company believes that its reserves could potentially support dividend payments for as long as 20 years under current conditions.
#How Does Strive Manage Its Bitcoin Holdings?
Strive's holdings exceed 15,000 BTC and boasts a completely debt-free balance sheet. Some estimates suggest the firm possesses as much as 19,000 BTC, valued at around $1.2 billion. In June 2026, Strive was raising approximately $8.1 million daily through SATA issuance, maintaining this momentum even during Bitcoin price fluctuations. These funds primarily go towards acquiring more Bitcoin.
#Why is Volatility Not Always a Concern?
Notably, SATA and STRC preferred share prices experienced significant volatility in mid-June 2026, which Cole attributes to leveraged liquidations instead of any fundamental credit or liquidity problems at Strive. This context is vital for investors to understand the market dynamics at play.
#What Should Investors Consider?
Strive's strategy of maintaining an 18-month reserve positions SATA as a yield-bearing financial instrument anchored by a Bitcoin portfolio, enhanced by a dedicated cash buffer to protect against short-term Bitcoin price volatility. The daily payment structure, effective from mid-June, offers investors a more frequent liquidity source.
However, risks are inherent and warrant attention. The 18-month reserve serves as a buffer rather than a permanent fix. Should Bitcoin enter a bear market that far exceeds previous cycles, these reserves could ultimately diminish, forcing the company to decide between selling BTC at a loss or halting dividend payments.
Furthermore, the strategy of raising $8.1 million daily through new SATA issuances leads to an increase in the number of preferred shares available, which translates to a growing dividend obligation. The financial health of this strategy relies heavily on Bitcoin's appreciation to adequately cover the increased dividend demand. If Bitcoin fails to rise, the reserve may run out more quickly than anticipated.