A listed company starts paying dividends every day

US Nasdaq-listed bitcoin asset manager Strive started paying dividends to investors every weekday, the company informs. For new investors, dividends start flowing the day after the investment.

There are some listed companies in the US that pay dividends monthly. Strive’s decision is in a class of its own compared to these serial shooters of dividends.

Strive promises to pay an annual dividend of 13 percent to its preferred share series. The company says that it is aiming for a price of 99-101 dollars for these preferred shares, so the annual dividend yield should therefore be around 13 dollars per share.

There are about 250 business days in a year, so the dividend should be about five cents a day per share. The company has said that it will pay a daily dividend of 4.93 dollar cents in July.

Difficult business

According to its website, Strive is an institutional asset manager focused on disciplined capital allocation and value creation. The company says its primary goals are buying bitcoins, increasing the number of bitcoins per share and beating bitcoin’s returns in the long term.

However, there have been questions in the public about the company’s ability to create value. If dividends are paid by selling bitcoins, it creates downward pressure on bitcoin. For the dividends to be worth paying, the returns on Strive’s bitcoin holdings should grow faster than the amount required to pay the dividends.

Strive talks a lot about its buffer funds, which can be used to pay dividends if necessary.

Strive says it has enough cash and marketable securities to pay 18 months of dividends. In addition, the company mentions that it manages more than 15,000 bitcoins. With the combined assets, the company claims to be able to pay dividends for about 20 years.

The owners have big names

Strive was founded in 2022 in the United States. Its founders include Vivek Ramaswamywho two years later was also a candidate in the primaries of the Republican Party of the United States. Eventually, however, Ramaswamy gave up his candidacy and gave his support to the current president of the United States For Donald Trump.

In addition to Ramaswamy, an artificial intelligence company Palantir founder Peter Thiel and a billionaire hedge fund manager Bill Ackman can be found in Strive’s backend. Also the Vice President of the United States JD Vancen the founder of Narya Capital has invested Striveen.

Strive has branded itself as an anti-woke thinking, ESG and DEI alternative for investors. The company says on its website that DEI and ESG thinking is eroding the value and excellence of stocks in the corporate world.