Strive (ASST) said its preferred stock 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-to-one innovation,” positioning SATA as a cash-yield instrument designed to compete with and outperform traditional money market alternatives.
“SATA will be the first listed security in the history of the U.S. capital markets to pay cash dividends every business day,” Cole said in a statement Thursday.
The company maintained the Series A variable rate perpetual preferred stock (SATA) dividend rate at 13% per year, but the shift to daily from monthly payouts raises the effective annual percentage yield to approximately 13.88%, a 7.6 basis point improvement over monthly payout structures, according to the release. The increase in performance is due to the more frequent compounding process that lasts approximately 250 business days per year.
In addition, the company has paid off all outstanding debt. Following the repurchase of its remaining long-term notes, Strive now has no short- or long-term debt obligations, no margin requirements and no encumbered bitcoins, 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 bitcoins, ranking it as the ninth publicly traded company globally by bitcoin treasury holdings.
The company’s shares are up about 10% this year, while Strategy is up 15%. Bitcoin fell around 9% in the same period.
Read more: Strategy’s STRC Preferred Series Receives $50M Investment from BTC Treasury Company Strive
