A 13% dividend is set to force another Bitcoin treasury company into the unthinkable: liquidating its BTC to pay cash

Strive, a Bitcoin treasury company, has retired its conventional notes, but its capital structure still carries a large senior claim ahead of common shareholders.SATA is perpetual preferred equity rather than conventional debt. Its cumulative cash dividends rank ahead of Strive’s common stock. The company had 7,829,502 SATA shares outstanding at June 30, representing a $782.95 million stated amount and approximately $783 million of aggregate liquidation preference, according to its Aug. 10 quarterly filing.Strive’s board maintained SATA’s variable dividend rate at 13% for periods beginning on or after Aug. 1. Applying that rate to the unchanged June 30 share count produces roughly $101.8 million of annualized dividends. The figure is a desk calculation, not company guidance, and will change if Strive adjusts the rate or issues more preferred shares.Against the $154.9 million of cash and cash equivalents Strive reported as of Aug. 7, that run rate implies about 18.3 months of cash-only coverage. The ratio is static, not a forecast of when Strive will exhaust its cash. It excludes operating needs and inflows, other liquid investments, new financing ,and changes to SATA’s rate or shar...