2h ago
Strive to Turn SATA Preferred into Daily-Paying Bitcoin Treasury Product at 13% Rate
Strive said it will convert its SATA preferred stock into a Bitcoin treasury product that pays cash dividends every business day, starting June 16, 2026. The company said the security will maintain a 13.00% annualized dividend rate for monthly periods beginning on or after May 16.
Strive described SATA as the first listed U.S. security to commit to cash payouts every business day, calling the structure a "zero-to-one innovation." CEO Matthew Cole pointed to Strive's balance sheet as support for the shift, saying the firm is debt-free, has no margin requirements, and holds "zero encumbered Bitcoin." CIO Ben Werkman said the daily cadence—"each and every Business Day" beginning June 16—is designed to better match modern market rhythms and reduce the wait between payments.
On its Bitcoin treasury, Strive reported holdings of 15,009 BTC after purchasing 6,001 BTC in Q1 and another 1,381 BTC from April 1 through May 12. As of May 12, it also held $87.6 million in cash and cash equivalents and a $50.5 million fair-value position in Strategy's STRC. Strive said it is debt-free after repurchasing its remaining notes payable.
For Q1, the company reported a GAAP net loss of $265.9 million, driven largely by a $295.8 million fair-value decline in its Bitcoin holdings.
Strive framed the daily distribution schedule as a core product feature. At a 13.00% stated rate, monthly compounding implies a 13.8032% APY; spreading payments across roughly 250 business days lifts the effective annual yield to about 13.8790% APY, an increase of about 7.57 basis points. Using a $100 par example, the prior monthly payout would be about $1.08333 per share; in a 22-business-day month, that equates to roughly $0.04924 per share paid each business day. Strive also argued that more frequent cash flows create more reinvestment touchpoints and may smooth trading around payouts by dispersing dividend-related activity across sessions rather than concentrating it around monthly ex-dividend dates. Under the new structure, SATA would generate roughly 250 cash-flow events per year versus 12.
The move positions SATA against Strategy's STRC (Stretch), a widely traded perpetual preferred that currently pays an 11.50% annual cash dividend monthly. Strategy's STRC is substantially larger, with $8.54 billion in notional outstanding. Strategy recently highlighted elevated activity in STRC: Michael Saylor said the security hit "all-time high volume" with $1.53B of liquidity, "two cents of volatility," and a close at par. STRC.live reported 15.3 million shares traded, the biggest day on record and above a prior peak set on April 14. Strategy has also floated increasing payout frequency, proposing semi-monthly dividends to reduce reinvestment lag and support liquidity, though that would still be less frequent than Strive's business-day schedule.
An additional wrinkle: Strive itself holds STRC, with a $50.5 million fair-value position as of May 12, which the company previously characterized as roughly $50 million and a sizable allocation within its corporate treasury. For investors, the trade-off is scale and liquidity in STRC versus a higher stated rate paired with a daily-pay design in SATA. Strive is betting that payment frequency and immediacy will be a meaningful differentiator.
At the time of publication, Bitcoin traded at $80,643.