Strive (ASST) said its preferred shares will begin paying cash dividends every business day starting June 16, a first in the history of a U.S.-listed security.
Calling the daily dividend structure a “zero-to-one innovation,” CEO Matthew Cole positions SATA as a cash yield vehicle designed to compete with and improve upon traditional money market alternatives.
“SATA will be the first publicly traded security in the history of U.S. capital markets to pay a cash dividend every business day,” Cole said in a statement Thursday.
The company maintained the variable-rate Series A perpetual preferred stock (SATA) dividend rate at 13% annually, but changed the payout from monthly to daily payments, raising the effective annual yield to approximately 13.88%, a 7.6 basis point improvement over the monthly payment structure, the statement said. The increase in yield is due to the more frequent compounding process of approximately 250 working days per year.
Additionally, the company paid off all outstanding debt. After repurchasing its remaining long-term notes payable, Strive now has zero short- or long-term debt, no margin requirements and no Bitcoin collateral, the company said in a statement.
SATA is structured similarly to Strategy’s (MSTR) counterpart Stretch (STRC), with higher-than-standard transactions allowing the company to raise cash to support its Bitcoin holdings by issuing more funds through market (ATM) sales channels.
Strive currently holds 15,009 Bitcoins and is the ninth largest publicly traded company in the world based on Bitcoin inventory.
The company’s shares are up about 10% this year, while Strategy is up 15%. Bitcoin is down about 9% over the same period.
Read More: Strategy’s STRC Priority Series Receives $50M Investment from BTC Finance Firm Strive
