Strive stock rallies on daily dividend plan even as Q1 losses top $265M

Strive stock jumped nearly 6% after the company announced its daily dividend payouts for investors holding its Series A Perpetual Preferred Stock (SATA).

The firm revealed its SATA stock will begin paying daily dividends starting June 16. The preferred shares currently offer a 13% annualized dividend rate, with the daily structure expected to slightly boost the effective annual yield through more frequent compounding.

CEO Matt Cole said Strive aims to become the first listed company to roll out daily dividends, echoing Strategy’s use of perpetual preferred stock sales to finance Bitcoin accumulation. He described the initiative as a “zero-to-one innovation” aimed at income-focused investors seeking alternatives to traditional fixed-income products.

Despite investor enthusiasm surrounding the dividend announcement, Strive reported a GAAP net loss of $265.9 million for the first quarter ended March 31, compared with a loss of $3.7 million a year earlier.

Strive attributes its QI’s net loss to Bitcoin’s downside

On the heels of its dividend announcement, Strive (ASST) closed Thursday up 5.8% at $17.70 and even edged 0.73% higher after hours. With that, the firm has eked out a 2.43% gain so far this year. However, it is still nursing a brutal 81% loss on the 1-year chart.  

Nonetheless, aside from the stock rise, the announcement drew the attention and applause of top crypto players. Strategy executive chairman Michael Saylor gave his personal stamp of approval to Strive, calling their dividend model “impressive.”

The Bitcoin For Corporations contributor, Adam Livingston, also publicly congratulated Matt Cole’s team for pushing the boundaries of digital credit and corporate yields.

When Strive revealed the new initiative, it also disclosed its financial results for the first quarter ended March 31, 2026. However, the firm confirmed a $265.9 million unrealized net loss for Q1.

It blamed the downturn on Bitcoin’s 23% quarterly decline, which reduced the fair value of its crypto reserves. Though even with the unrealized loss, the company finished Q1 with 13,628 Bitcoin on its balance sheet and has since increased that total to 15,009 BTC. Its Bitcoin stash is currently valued at around $1.22 billion. 

The firm also emphasized improvements to its balance sheet, saying it fully eliminated all outstanding short- and long-term debt as of May 12. Cole shared: “Today, Strive stands debt-free, with zero margin requirements, and zero encumbered Bitcoin; a balance sheet purpose-built to thrive through Bitcoin volatility.”

How did other crypto companies fare amid falling crypto asset prices?

Recently, another Bitcoin firm, Nakamoto, ticked up 2.7% on the back of a 500% quarter-on quarter acceleration in revenue. For Q1, the firm reported revenue of $2.7 million, with part of the income coming from using Bitcoin reserves as collateral to produce returns.

However, the company also saw a net loss of $238.8 million. A $107.7 million non-cash write-down connected to a pre-acquisition option and a $102.5 million decline in the value of its Bitcoin treasury weighed heavily on the company’s results, it said.

Nonetheless, Nakamoto CEO David Bailey labeled the period as a vital evolutionary phase for the firm.

Meanwhile, shares of Circle Internet Group jumped 15% after the stablecoin issuer beat expectations with $694 million in revenue, up 20% from the previous quarter. According to analysts, the revenue rise was supported by the higher average USDC in circulation. Moreover, the firm saw network usage surge, with onchain volume reaching $21.5 trillion, a 263% increase from last year. It also achieved diluted EPS of 21 cents per share, surpassing the Zacks Consensus Estimate by over 40%.

On the other hand, Coinbase declined after reporting weaker earnings and lower revenue. Falling short of Wall Street expectations, the company turned in a $394 million net loss on top of a 31% annual revenue dip to $1.41 billion. Most experts have attributed the downside to the falling crypto prices and spot trading activity.