Strive Inc. CEO Matt Cole said Thursday the company could survive Bitcoin (BTC) falling to $0.01 because it has no debt that would force it to sell its holdings.
Cole said Strive finances itself only through preferred stock. He contrasted that approach with borrowing to speculate in crypto, which he said can lead to liquidation if prices plunge.
Strive’s SATA preferred shares pay a floating dividend of about 13%, which is scheduled to rise to 13.25% in December. Its SATS shares pay a fixed 15% dividend. SATS gives holders no direct claim on Bitcoin. Its $100 initial liquidation preference ranks above Strive’s common stock, below SATA and future debt, and behind liabilities at Strive subsidiaries. More details are available in the terms of Strive’s SATS preferred stock.
Cole said Strive has prepared for an 80% drop in Bitcoin. He said the asset represents about 85% to 90% of the company’s balance sheet, with cash making up the remaining 10% to 15%. Cole said that cash would cover obligations through a downturn without requiring Bitcoin sales.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to [email protected].
