Strive’s SATA to Be First U.S. Security Paying Daily Dividends

Strive announced it will begin paying cash dividends every business day on its Variable Rate Series A Perpetual Preferred Stock (SATA) starting June 16, a change the company says will make SATA the first U.S.-listed security to distribute dividends daily.

The company plans to keep SATA’s stated annual dividend rate at 13% while moving payouts from monthly to daily. An investor presentation projects that daily compounding will raise SATA’s effective annual yield to about 13.88% without changing the nominal rate. Strive said the product was modeled on a similar dividend instrument from Strategy, which currently pays monthly.

Strive reported a net loss of $265.9 million for the quarter ended March 31. The loss reflected a $295.8 million decline in the value of its Bitcoin holdings. The company holds 15,009 Bitcoin, valued near $1.2 billion based on about $81,500 per coin at the time of the announcement.

The company said it repurchased its long-term notes, eliminating outstanding debt, and that SATA has become its sole form of Bitcoin-backed “amplification.” Strive also disclosed ownership of $50.5 million of Strategy’s STRC product and about $87.6 million in cash and cash equivalents.

After the earnings release and the SATA announcement, Strive’s shares rose more than 5% to $17.60, after earlier reaching about $18.22. Since announcing its first Bitcoin purchase a little over eight months ago, the stock has fallen roughly 86% from a $130 peak.

In a company statement, Chief Executive Matt Cole called the change a “zero-to-one innovation.” Strategy co-founder Michael Saylor commented on the company’s results as “impressive” on social media and addressed dividend liquidity on a podcast, saying he is “very famous for saying ‘never sell your Bitcoin'” and clarifying the position as “never be a net seller.”

Industry participants have used dividend-style securities as a way to raise capital and expand corporate Bitcoin holdings. Strategy’s STRC has been used to raise funds but is structured as an unsecured instrument without traditional debt protections or Bitcoin-backed collateral. Strive’s exposure to STRC illustrates links between these products among firms building Bitcoin positions.

Strive presented the repurchase of its long-term notes and the consolidation of amplification into SATA as steps to simplify its capital structure while maintaining a high-yield preferred offering for investors.