Strive’s SATA to become first U.S. listed security to pay daily cash dividends
The daily payout structure lifts the effective yield to 13.88% as the company eliminates all debt and expands its bitcoin treasury strategy.
What to know:
- SATA will become the first U.S. listed security to pay cash dividends every business day starting June 16.
- While the stated annual dividend rate remains 13%, the daily payout structure increases the effective yield to roughly 13.88% through more frequent compounding.
- The company has also eliminated all outstanding debt and now holds 15,009 bitcoin, making it the ninth largest publicly traded corporate bitcoin holder globally.
“SATA will be the first listed security in the history of U.S. capital markets to pay cash dividends every single Business Day,” Cole said in a statement on Thursday.
The firm maintained the Variable Rate Series A Perpetual Preferred Shares (SATA) dividend rate is at 13% per annum, but the move to daily payments from monthly lifts the effective annual percentage yield to approximately 13.88%, a 7.6 basis-point improvement over monthly payment structures, according to the statement. The increase in yield is due to the more frequent compounding process across roughly 250 business days per year.
In addition, the company has retired all outstanding debt. Following the repurchase of its remaining long-term notes payable, Strive now carries zero short or long-term debt obligations, with no margin requirements and no encumbered bitcoin, the company said in the statement.
