Strive said its Variable Rate Series A Perpetual Preferred Shares, SATA, will begin paying cash dividends on every business day starting June 16. The company described the move as the first daily cash dividend structure for a U.S.-listed security.
CEO Matthew Cole said in a Thursday statement that the setup is a “zero-to-one innovation.” Strive is positioning SATA as a cash-yield instrument meant to compete with traditional money market alternatives.
Unchanged 13% dividend rate translates into a 13.88% effective annual yield
According to the company, SATA’s stated dividend rate remains 13% per year. What changes is the payment frequency. By moving from monthly distributions to daily payments on business days, the effective annual percentage yield rises to about 13.88%.
Strive said that represents a 7.6 basis-point improvement over monthly payment structures. The increase comes from more frequent compounding, based on roughly 250 business days a year.
Company says it has eliminated all debt after repurchasing remaining notes
Strive also said it has retired all outstanding debt. After repurchasing its remaining long-term notes payable, the company now has no short-term or long-term debt obligations, no margin requirements, and no encumbered bitcoin, according to the statement.
SATA is structured in a way the company said is similar to Strategy’s (MSTR) comparable instrument, Stretch (STRC). If the security trades above par, Strive can issue additional shares through an at-the-market, or ATM, sales channel and raise cash to expand its bitcoin holdings.
Strive holds 15,009 BTC and ranks ninth among public companies
Strive currently holds 15,009 bitcoin. The company said that places it ninth globally among publicly traded companies by bitcoin treasury holdings.
Its shares are up about 10% this year. Strategy has gained 15% over the same period, while bitcoin has fallen about 9%.