Shares of Strive Inc. climbed as much as 7% on Thursday after the company unveiled a daily dividend schedule for its preferred stock and confirmed it has wiped out all outstanding debt.
Daily dividends at 13% on SATA
Strive said its Variable Rate Series A Perpetual Preferred Stock (SATA) will begin paying cash dividends every business day starting June 16, at an annual rate of 13%.
Chief executive Cole said SATA will be the first listed U.S. security to pay cash dividends on a daily basis. The change was detailed in Strive’s first-quarter report.
The structure converts what is typically a monthly or quarterly income stream into high-frequency cash flow, with the 13% annual rate distributed in small daily installments.
Balance sheet now debt-free
In the same filing, Strive said it repurchased the remaining balance of its long-term notes during the quarter, leaving the company with no short- or long-term debt.
Cole highlighted that Strive now operates with “zero margin requirements, and zero encumbered bitcoin,” describing a balance sheet designed to absorb volatility in its core treasury asset.
The company confirmed that none of its bitcoin holdings are pledged as collateral.
Bitcoin holdings exceed $1.2 billion
Strive’s bitcoin reserves stand at 15,009 BTC, valued at more than $1.22 billion as of May 12.
Of that total, 6,001 BTC were added in the first quarter, including 5,048 BTC acquired through the completed takeover of bitcoin treasury firm Semler Scientific. Another 1,381 BTC have been accumulated since the start of the second quarter.
On these figures, Strive ranks as the ninth-largest public holder of bitcoin, just behind Riot Platforms, further cementing its profile as a bitcoin-focused treasury company.
Large unrealized loss from price swings
The company reported an unrealized net loss of roughly $266 million for the quarter, driven mainly by a $295.8 million decline in the fair value of its bitcoin portfolio.
The loss underlines how Strive’s growing concentration in bitcoin amplifies the impact of price moves on its reported results, even as the firm positions itself for long-term exposure to the asset.
Strategic income from STRC preferred shares
Strive also disclosed a $50.5 million position in the preferred shares of Strategy’s STRC, a variable-rate perpetual stock tied to bitcoin financing.
Strategy, formerly MicroStrategy, uses STRC as a key funding tool for its own bitcoin purchases. The security currently pays an 11.5% annual dividend.
By holding STRC, Strive is seeking to earn high-yield income from another bitcoin-focused company, layering yield from the broader digital asset ecosystem on top of its direct bitcoin holdings.
Curious how Bitcoin moves impact stocks like Strive? Learn smart crypto strategies in our latest guide: Bitcoin trading strategies.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
