Strive CEO Proposes Evaluation of SATA's New Share Issuance Mechanism, Raising Concerns Over Increased Short Selling Costs

Mett Cole, CEO of Bitcoin treasury company Strive, has initiated a community survey to gather market feedback on whether to temporarily suspend new issuances of SATA when the price reaches $100, in order to assess what aligns better with shareholders' long-term interests. Cole pointed out that short positions in SATA have increased by approximately 1 million shares over the past 30 days, with current borrowing costs reaching about 70% annualized interest rate. Market liquidity and the structure of short selling are undergoing significant changes. While the goal remains to push SATA's price towards the $100 level, some investors believe that Strive's continued issuance of new shares at a fixed price of $100 could create an implicit price ceiling. However, if Strive retains issuance flexibility, it will increase short selling costs and risks, potentially leading to short-term volatility, but in the long run, it could help reduce systemic volatility and enhance the effectiveness of the market pricing mechanism.
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