Strive Plans Daily Cash Dividends on SATA Preferreds in First for US-Listed Company
Summary
- Strive said it plans to begin paying cash dividends on its perpetual preferred stock SATA every business day starting May 16.
- The annual nominal dividend rate of 13%% will remain unchanged, and the shift to every-business-day payouts will raise the effective annualized yield to 13.88%%, the company said.
- Strive holds about 15,000 Bitcoin, and its shares are up about 10%% this year.
Forecast Trend Report by Period
Strive, a Bitcoin digital-asset treasury company, is moving to pay dividends every business day.
CoinDesk reported on May 14 that Strive Chief Executive Officer Matt Cole said the company will begin paying cash dividends on its perpetual preferred stock, SATA, every business day starting May 16.
The annual nominal dividend rate will remain 13%. Strive said shifting from monthly payouts to every-business-day distributions would lift 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 Strategy's perpetual preferred stock, Stretch. If the preferred shares trade above par value, the issuer can sell additional shares through an at-the-market offering to raise cash and use the proceeds to buy Bitcoin.
Strive currently holds about 15,000 Bitcoin. That is the ninth-largest holding among publicly listed companies globally.
Strive shares are up about 10% this year, while Strategy has gained about 15% over the same period.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
