Strive Tells Investors Not to Assume Automatic SATA Issuance at $100

Roughly 18 hours after opening a public poll on the question, Strive said investors should no longer assume it will automatically issue new SATA shares at $100, citing market conditions it does not consider normal.

Strive changes its stance on issuance at par

Strive chairman and chief executive Matt Cole posted a multi-part update on X, titled “SATA UPDATE,” roughly 18 hours after opening his original poll on suspending issuance at $100. Targeting $100 and minimising SATA’s long-term volatility remain the company’s stated objectives. But going forward, unless Strive communicates otherwise, investors should not assume the company will automatically issue new SATA shares at that level. Cole said Strive still expects that to remain likely under normal market conditions, and stated plainly that Strive does not view current conditions as normal.

Cole said Strive believes retaining issuance flexibility around $100 serves shareholders’ long-term interests and SATA’s long-term stability. He said the company does not consider mechanical, fully predictable issuance rules the best way to minimise volatility over time, arguing that this kind of rigidity can itself invite behaviour that raises volatility, and that recent market activity shows this risk is not theoretical.

SATA has traded below par since 18 June

SATA closed at $100.00 on 29 May. It returned to that level for three consecutive sessions on 15, 16 and 17 June, closing at $100.00, $99.99 and $100.00 respectively as daily dividends begun. On 18 June, the stock fell to an intraday low of $92.88 before closing at $97.71, on volume of 1.6 million shares - more than double its typical daily volume through early June.

SATA has not closed at par since. It fell further over the following week, hitting a closing low of $83.53 on 25 June and an intraday low of $79.01 the day after, before partially recovering. By 30 June, the day Cole opened his poll, SATA had closed at $91.05, having traded between $88.86 and $92.64 during the session.

The policy follows a rise in short interest and a break below par

The update follows a run of data BTN has covered over the past 48 hours. Short interest in SATA rose by roughly 1 million shares over the 30 days to 30 June, pushing borrow costs from 6.10% APR on 12 June to 68.57% APR by 30 June, according to figures posted by Strive chief risk officer Jeff Walton. SATA itself had closed below $100 for eight straight sessions by 30 June, after briefly returning to par on 15, 16 and 17 June, hitting a closing low of $83.53 on 25 June before partially recovering to $91.05 (see price action, above).

Strive says specific actions won’t be pre-announced

Cole said the framework itself is transparent, but specific actions will not be telegraphed in advance. He said Strive expects to weigh short interest, borrow costs and other market data, without limiting its analysis to any single metric. Future issuance pauses or other actions, he said, will be evaluated case by case based on what Strive management believes serves shareholders’ long-term interests and SATA’s long-term stability. He described the goal as making the structure more resilient, not less predictable for its own sake.

Cole closed the thread by saying Strive asked for market feedback to pressure-test its view, calling the engagement on both sides thoughtful and constructive, and thanking those who voted, commented, or reached out directly. He did not give a final vote count or say whether the poll’s result influenced the decision. The update was posted before the poll’s original roughly 24-hour voting window had run its full course. As of this afternoon, the poll sat 70-30 in favour of the decision.