Strive CEO: $100 Target Maintained, But No Automatic Issuance at That Price
Matt Cole, CEO of Strive Asset Management, took to social media to clarify the issuance mechanism of the firm's SATA product. He emphasized that maintaining a $100 target for SATA and reducing long-term volatility remain core objectives, but investors should not assume that Strive will automatically issue new SATA shares at $100. Unless otherwise communicated in the future, this assumption is unfounded.
Cole noted that retaining issuance flexibility around the $100 target is optimal for shareholders' long-term interests and for the price stability of SATA itself. Current market conditions are not normal, making a rigid issuance model potentially counterproductive.
Issuance Decisions Based on Multi-Dimensional Market Data, No Advance Notice
Strive management indicated that any decision to suspend issuance or take other actions will depend on a comprehensive assessment of long-term stability for shareholders and the security. Specific actions will not be pre-announced. The management plans to examine market data such as short interest and borrowing costs, but analysis is not limited to a single metric. Cole stressed that the goal is to make SATA's structure more robust, not to create unpredictability for its own sake.
The statement addresses market speculation about whether SATA would continue to be issued at a fixed price. In crypto-related assets, a flexible issuance mechanism helps prevent price disconnection from fundamentals, but it also presents challenges in managing market expectations.