Bitcoin Firm Strive Unveils Daily Dividend Payments for SATA Preferred Shares

Strive’s preferred stock will soon become the first U.S.-listed security to provide investors with daily cash dividends, the Bitcoin-buying firm declared on Thursday.

In a statement, CEO Matt Cole described the shift as a “zero-to-one innovation,” affecting the company’s Variable Rate Series A Perpetual Preferred Stock (SATA) starting June 16.

SATA, which debuted on the Nasdaq in November, currently carries a stated annual dividend rate of 13%. While that rate is expected to remain unchanged as Strive transitions from a monthly to a daily payout format, the more frequent compounding is projected to boost SATA’s effective annual yield to 13.88%, according to an investor presentation.

The transition underscores continued experimentation among Bitcoin-buying firms that have embraced dividend-paying products as a way to grow their stockpiles. Strive modeled SATA on Strategy’s STRC, which debuted in July and currently pays out 11.5% monthly.

Strive telegraphed SATA’s shift alongside first-quarter earnings. The company reported a net loss of $265.9 million in the three-month period ended March 31, attributing the performance to a $295.8 million decline in the value of its Bitcoin holdings.

Holding 15,009 Bitcoin on its balance sheet, Strive is the ninth-largest corporate holder of Bitcoin, according to Bitcoin Treasuries. With Bitcoin changing hands around $81,500 as of this writing, the sum was valued around $1.2 billion. Strive unveiled its first acquisition in September.

Strive shares jumped more than 5% to a recent price of $17.60, according to Yahoo Finance, after touching a high of $18.22 earlier Thursday. Since the company announced its first Bitcoin purchase just over eight months ago, shares have plunged 86% from $130, facing volatility as the digital asset has fallen about 35% from all-time highs.

Although Strive had issued long-term notes to purchase more Bitcoin than it could otherwise, the firm said on Thursday that it had repurchased them, eliminating outstanding debt. In the presentation, Strive said SATA had become its only form of Bitcoin-backed “amplification.”

Last month, Strategy announced a proposed shareholder vote to double the dividend payment frequency on STRC to a semi-monthly schedule, a move aimed at reducing its volatility. So far this year, Strategy has raised billions of dollars via the dividend-paying product.

Although STRC has seen adoption among Bitcoin-buying peers, Strategy’s leadership has said that the dividend-paying product has also found adoption among individual investors. Despite being marketed as “digital credit,” STRC is an unsecured asset lacking the legal protections, security interests, and Bitcoin-backed collateral requirements of traditional debt.

Strive noted on Thursday that it owns $50.5 million worth of STRC, in addition to $87.6 million worth of cash and cash equivalents. Cole shared the company’s performance in a post to X, and Strategy co-founder and Executive Chairman Michael Saylor chimed in, calling it “impressive.”