Strive (ASST) announced that its preferred stock will begin paying cash dividends every business day starting June 16, the first time in the history of a U.S.-listed security.
CEO Matthew Cole called the daily dividend structure a “zero-to-one innovation” and positioned SATA as a cash yield vehicle designed to compete with and improve upon traditional money market alternatives.
“SATA will be the first publicly traded stock in the history of U.S. capital markets to pay a cash dividend on every business day,” Cole said in a statement Thursday.
The company maintained the dividend rate on its variable rate Series A Perpetual Preferred Stock (SATA) at 13% per year, but the move from monthly to daily payments increased the effective annualized yield to approximately 13.88%, an improvement of 7.6 basis points over the monthly payment structure, according to the statement. The increase in yield is due to the compounding process occurring more frequently over approximately 250 business days per year.
Additionally, the company has repaid all outstanding debts. After repurchasing its remaining long-term notes payable, Strive now has no short-term or long-term debt, no margin requirements or Bitcoin encumbrances, the company said in a statement.
SATA is structured similarly to Strategy’s (MSTR) counterpart Stretch (STRC), with transactions above par allowing the company to issue more through its at-the-market (ATM) distribution channel and raise cash to shore up its Bitcoin holdings.
Strive currently holds 15,009 Bitcoin, ranking it as the 9th largest publicly traded company in the world by Bitcoin Treasury holdings.
The company’s stock is up about 10% this year, while Strategy’s is up 15%. Bitcoin fell by about 9% during the same period.
Read more: Strategy’s STRC Preferred Series receives $50M investment from BTC finance company Strive
