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U.Today1 min read
Strive’s SATA to become first U.S. listed security to pay daily cash dividends
TL;DR
Strive's SATA will be the first U.S.-listed security to pay daily cash dividends starting June 16, offering a 13% annual rate with an effective yield of approximately 13.88%. This innovation aims to enhance traditional money market alternatives.
Key points
- Strive's SATA will pay cash dividends daily from June 16.
- It is the first U.S.-listed security to implement daily dividends.
- The annual dividend rate is 13%, with an effective yield of approximately 13.88%.
Mentioned in this story
StriveMatthew Cole
SATA
Strive (ASST) said that its preferred stock will begin paying cash dividends every single business day from June 16, a first in U.S.-listed securities history.
CEO Matthew Cole called the daily dividend structure a "zero-to-one innovation," positioning SATA as a cash yield instrument designed to compete with and improve upon traditional money market alternatives.
"SATA will be the first listed security in the history of U.S. capital markets to pay cash dividends every single Business Day," Cole said in a statement on Thursday.
The firm maintained the Variable Rate Series A Perpetual Preferred Shares (SATA) dividend rate is at 13% per annum, but the move to daily payments from monthly lifts the effective annual percentage yield to approximately 13.88%, a 7.6 basis-point improvement over monthly payment structures, according to the statement. The increase in yield is due to the more frequent compounding process across roughly 250 business days per year.
Strive (Monthly to Daily Adds)
In addition, the company has retired all outstanding debt. Following the repurchase of its remaining long-term notes payable, Strive now carries zero short or long-term debt obligations, with no margin requirements and no encumbered bitcoin, the company said in the statement.
SATA is structured similarly to Strategy’s (MSTR) equivalent, Stretch (STRC), and trading above par allows the company to issue more through an at-the-market (ATM) sales channel, raising cash to bolster its bitcoin holdings.
Strive currently holds 15,009 bitcoin, ranking it as the ninth-largest publicly traded company globally by bitcoin treasury holdings.
The company's shares have risen about 10% this year, while Strategy has climbed 15%. Bitcoin fell about 9% in the same time period.
Read more: Strategy's STRC preferred series gets $50 million investment from fellow BTC treasury company Strive
Q&A
What is Strive's SATA and how does it work?
Strive's SATA is a preferred stock that will pay cash dividends every business day, starting June 16, with a 13% annual rate.
How does the daily dividend payment affect the yield of SATA?
The switch to daily payments increases the effective annual percentage yield to approximately 13.88%, due to more frequent compounding.
Who is the CEO of Strive and what did he say about SATA?
Matthew Cole is the CEO of Strive, and he described the daily dividend structure as a 'zero-to-one innovation' in U.S. capital markets.
