Strive to Pay Daily Dividends on SATA Preferred Stock in US-Listed First
Summary
- Strive said it will maintain its annual dividend rate at 13%% and begin paying cash dividends on its perpetual preferred stock SATA every business day starting May 16.
- The company said switching to a daily dividend structure would raise the effective annualized yield to 13.88%% through compounding.
- Strive holds about 15,000 Bitcoin, and its stock has risen about 10%% this year, while Strategy shares have gained about 15%%.
Forecast Trend Report by Period
Strive, a Bitcoin digital asset treasury company, plans to pay dividends every business day.
CoinDesk reported on May 14 that Strive Chief Executive Officer Matthew Cole announced the company will begin paying cash dividends on its perpetual preferred stock, SATA, every business day starting May 16.
The nominal annual dividend rate will remain 13%. Strive said shifting the payout schedule from monthly to every business day would increase the effective annualized yield to 13.88% through compounding.
Strive would be the first US-listed company to pay dividends on its preferred stock every business day. "SATA is a cash-yield product designed to compete with and improve on traditional money-market products," Cole said. He added that SATA would be the first listed security in US capital markets history to pay cash dividends every business day.
SATA is structured similarly to STRC, Strategy's perpetual preferred stock. If the preferred shares trade above par, the issuer can raise cash by selling additional shares through an at-the-market program and use the proceeds to buy Bitcoin.
Strive currently holds about 15,000 Bitcoin, the ninth-largest stash among publicly listed companies globally.
Strive shares are up about 10% this year. Strategy shares have gained about 15% over the same period.
