Strive (ticker: ASST) CEO Matt Cole announced on X on July 2 that the SATA preferred stock target price remains $100, but the company no longer guarantees automatic issuance of new shares at $100 without further notice. Cole stated that current market conditions are "not normal," and retaining flexibility around $100 issuance aligns with shareholders' long-term interests and SATA's stability.
SATA Preferred Stock Policy Adjustment Highlights: Target Price Maintained, Three Core Principles Take Effect
According to Matt Cole's public statement on X, the SATA preferred stock policy adjustment includes three core principles:
Target Price Maintained at $100: Anchoring at $100 and minimizing long-term volatility remains SATA's core goal, and this principle stays unchanged.
Automatic Issuance Guarantee Removed: Unless otherwise announced, investors should not assume Strive will automatically issue new SATA shares at $100; Cole added that under normal market conditions this would still be the expected high-probability scenario.
Transparent Framework, Actions Not Pre-announced: The issuance evaluation framework is publicly disclosed, but specific issuance or suspension actions will not be announced in advance.
Issuance Decision Evaluation Framework: Short Interest, Borrowing Cost, and the Principle of Not Relying on a Single Indicator
Cole stated that Strive will continue to reference market data in making issuance decisions, specifically including indicators such as short interest and stock borrowing costs. Cole explicitly stated that the company's analysis "will not be limited to any single indicator"; pauses in issuance or other specific actions will be based on a comprehensive judgment aligned with "the best long-term interests of shareholders and SATA's long-term stability."
Previously, Strive had solicited market opinions on suspending SATA issuance, citing rising short positions and increasing borrowing costs; Cole did not provide specific data on these in the current statement.
Policy Adjustment Background: Recent Abnormal Market Moves and Known Risks of Mechanical Issuance Rules
Cole stated in the statement that "current market conditions are not normal" and pointed out that predictable, mechanical issuance rules carry known exploitation risks: fixed rules "may induce behaviors that increase volatility over time." He said, "Recent market activity shows that this risk is not theoretical," though the statement did not describe specific market events in detail.
Cole stated that Strive "does not believe that overly engineered rigidity is the best way to reduce long-term volatility" and that the policy adjustment aims to "make the structure more resilient, rather than making it less predictable for its own sake." Cole also said feedback from market participants is welcome to stress-test the company's judgment framework.
Frequently Asked Questions
What is SATA, and what is the direct impact of this policy adjustment on holders?
SATA is a preferred stock issued by Bitcoin acquisition company Strive (ticker: ASST), with a target price of $100. This policy adjustment removes the guarantee of automatic issuance of new shares at $100; in the absence of further notice, holders should not assume the company will automatically take issuance action when the stock reaches $100.
What criteria will Strive use to decide whether to issue new SATA shares?
According to Matt Cole's statement on X, Strive will evaluate market data such as short interest and stock borrowing costs, but will not rely on any single indicator; specific issuance or suspension decisions are based on a comprehensive judgment to "serve the best long-term interests of shareholders and SATA's long-term stability," and specific actions will not be announced in advance.
Why did Strive choose to abandon the mechanical automatic issuance rule?
Cole stated that predictable mechanical issuance rules "may induce behaviors that increase volatility over time," and recent market movements have shown this risk is not theoretical; retaining issuance flexibility aims to reduce the possibility of short sellers exploiting fixed rules, while maintaining the long-term structural resilience of SATA stock.
