Strive CEO Matt Cole opens poll on $SATA issuance policy amid short interest
Cole said Strive still targets a $100 price for SATA preferred stock but no longer plans to guarantee automatic issuance at that level, citing abnormal market conditions and short-selling risks.
Strive CEO Matt Cole said SATA preferred stock still has a $100 target price, but the company will no longer guarantee automatic new share issuance at that level. The update follows Cole’s earlier discussion of whether to temporarily pause new $SATA issuance at a $100 face value as short interest and borrowing costs climbed. He had said $SATA short interest increased by about 1 million shares over the past 30 days and that borrowing costs were about 70% annualized. Cole now says current market conditions are abnormal and that greater flexibility in issuance could help prevent short sellers from exploiting the mechanism, underscoring how supply controls can influence bearish positioning, volatility and price discovery.
- short interest: The total number of shares that traders have sold short and not yet covered.
- borrowing costs: The fees short sellers pay to borrow shares in order to maintain their positions.
- price discovery: The process by which market trading determines an asset's price based on supply and demand.