Strive's SATA Becomes First US Security to Pay Daily Cash Dividends
Strive announced that its Variable Rate Series A Perpetual Preferred Stock (SATA) will become the first U.S.-listed security to pay cash dividends every business day, starting June 16. The shift from monthly to daily payout is expected to increase SATA's effective annual yield from 13% to 13.88% due to more frequent compounding. This move is part of Strive's strategy to grow its Bitcoin holdings through dividend-paying products, modeled after Strategy's STRC. The announcement accompanied first-quarter earnings, which reported a net loss of $265.9 million, primarily driven by a $295.8 million decline in the value of its Bitcoin holdings. Strive holds 15,009 Bitcoin, valued at approximately $1.2 billion, making it the ninth-largest corporate Bitcoin holder. The company also repurchased its long-term notes to eliminate outstanding debt, leaving SATA as its only Bitcoin-backed amplification tool. The transition highlights ongoing experimentation among Bitcoin-buying firms seeking to enhance stockpiles via dividends. Strive shares rose over 5% to $17.60 on the news, but have fallen 86% since August due to Bitcoin volatility. Strategy's STRC, which pays 11.5% monthly, recently proposed a semi-monthly dividend schedule to reduce volatility.
Key facts
- SATA to pay daily cash dividends starting June 16, first US security to do so.
- Shift from monthly to daily payout boosts effective yield from 13% to 13.88%.
- Strive reports Q1 net loss of $265.9M due to Bitcoin value decline.
- Strive holds 15,009 Bitcoin, valued at ~$1.2B, ninth-largest corporate holder.
- Company eliminates outstanding debt via repurchase of long-term notes.