Strive (Stock Code: ASST) CEO Matt Cole announced on X on July 2 that the SATA preferred stock target price remains at $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 maintaining flexibility to issue near $100 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 platform, the SATA preferred stock policy adjustment includes three core principles:
Target Price Maintained at $100: Anchoring at $100 while minimizing long-term volatility remains the core goal of SATA; 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 scenario is still expected as a high probability.
Framework Transparent, Actions Not Pre-announced: The issuance evaluation framework is disclosed publicly, 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 for issuance decisions, specifically including short interest and stock borrowing cost as factors. Cole explicitly stated that the company's analysis "will not be limited to any single indicator"; suspension of issuance or other specific actions will be based on a comprehensive judgment "consistent with shareholders' best long-term interests and SATA's long-term stability."
Previously, Strive had solicited market opinions regarding the suspension of SATA issuance, against the backdrop of rising short interest and increasing borrowing costs; Cole did not provide specific data in this statement.
Policy Adjustment Background: Recent Abnormal Market Movements and Known Risks of Mechanical Issuance Rules
Cole explicitly stated in the statement that "current market conditions are not normal" and noted that predictable mechanical issuance rules have known risks of being exploited: fixed rules "may induce behavior that increases volatility over time." He said "recent market activity shows that this risk is not theoretical," though the statement did not detail specific market events.
Cole stated that Strive "does not believe that overly rigid design is the best way to reduce long-term volatility," and the goal of this policy adjustment is "to make the structure more resilient, not to make it less predictable for its own sake." Cole also said they are soliciting feedback from all market participants 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 (Stock Code: ASST), with a target price of $100. This policy adjustment removes the guarantee of automatic issuance of new shares at $100; without 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 X platform statement, Strive will evaluate market data such as short interest and stock borrowing cost, but will not rely on any single indicator; specific issuance or suspension decisions are based on a comprehensive judgment "consistent with shareholders' best long-term interests and SATA's long-term stability," and specific actions will not be pre-announced.
Why did Strive choose to abandon the mechanical automatic issuance rule?
Cole stated that predictable mechanical issuance rules "may induce behavior that increases volatility over time," and recent market trends have shown this risk is not theoretical; retaining issuance flexibility aims to reduce the possibility of shorts exploiting fixed rules while maintaining SATA's long-term structural resilience.
