Strive (ASST) said its preferred shares will begin paying cash dividends every business day starting June 16, a first in the history of U.S.-listed securities.
CEO Matthew Cole called the daily dividend structure a “zero-for-one innovation,” positioning SATA as a cash yield instrument designed to compete with and improve on traditional money market alternatives.
“SATA will be the first publicly traded security in the history of the U.S. financial markets to pay cash dividends every business day,” Cole said in a statement Thursday.
The company has maintained the dividend rate for the Series A (SATA) Perpetual Floating Rate Preferred Stock at 13% per year, but the move to daily rather than monthly payments increases the effective annual percentage yield to approximately 13.88%, an improvement of 7.6 basis points over monthly payment structures, according to the release. The increase in yield is due to the more frequent compounding process, over approximately 250 working days per year.
Additionally, the company has repaid all its debts. Following the repurchase of its remaining long-term notes, Strive now has no short- or long-term debt, no margin requirements and no encumbered bitcoin, the company said in the release.
SATA is structured similarly to its Strategy (MSTR) counterpart, Stretch (STRC), and above-average transactions allow the company to issue more through an over-the-counter (ATM) sales channel, thereby collecting liquidity to bolster its bitcoin holdings.
Strive currently holds 15,009 bitcoins, ranking it the ninth largest publicly traded company in the world in terms of bitcoin liquidity.
The company’s shares are up about 10% this year, while Strategy’s shares are up 15%. Bitcoin fell about 9% during the same period.
Read more: Strategy’s favorite series STRC receives a $50 million investment from another BTC treasury company, Strive.
