Strive to Pay 13% Annual Dividend on Series A Perpetual Preferred After Eliminating Debt

Strive, a bitcoin-focused investment firm, said it will pay dividends on its floating-rate Series A perpetual preferred stock, SATA, on each business day at a current annual rate of about 13%. The dividends will be funded by returns from the company’s bitcoin treasury strategy.

Cointelegraph reported on May 15 that Strive had repurchased its remaining long-term debt and cleared all outstanding borrowings as of the end of the first quarter. “Today, Strive has no debt, no margin requirements and no bitcoin pledged as collateral,” the company said. It plans to pay dividends from returns generated by its bitcoin treasury strategy.

Strive recorded an unrealized net loss of $265.9 million in the first quarter. The company said the loss stemmed from a 23% drop in bitcoin prices during the quarter, which reduced the fair value of its holdings.

Strive held 13,628 bitcoin at the end of the first quarter. It later bought an additional 1,381 bitcoin, lifting its holdings to 15,009. At current market prices, the stake is worth about $1.22 billion.