hodler

4 Jun 2026, 10:14

SATA: 13% Yield Preferred Stock Paying Daily Dividends

Summary SATA offers a 13% annual dividend and trades below par, presenting an attractive yield opportunity. SATA benefits from strong asset coverage—about 1.9x—backed primarily by Strive’s significant Bitcoin holdings and cash reserves, with no debt senior to SATA. The daily dividend payment structure enhances cash flow and security for investors, while cumulative and penalty-compounding features provide robust dividend protections. I rate SATA a Buy below $100, given its yield, asset backing, daily dividends, and mechanisms supporting a return to par, though Bitcoin volatility remains a key risk. Strive’s Variable Rate Series A Perpetual Preferred Stock ( SATA ) has a $100 stated amount, a $100 liquidation preference, cumulative dividends, and a dividend rate Strive can adjust within the security’s limits to target a $100 share price. At a recent price around $97 and a 13% annual dividend on the $100 stated amount, the current yield is about 13.4%. I believe SATA earns a Buy rating due to SATA’s very strong dividend suspension protections and asset coverage. SATA is a preferred stock and capital structure that takes Bitcoin-driven credit risk. SATA investors also do not have a lien on Strive’s Bitcoin, but the asset coverage is ample support. Balance Sheet SATA is the preferred equity financing tool for a Bitcoin treasury and asset management company. Strive raises capital through its common stock and preferred stock ATM offers and uses the proceeds to purchase Bitcoin. The goal is to grow Bitcoin per share over time via these capital markets activities. So the key variables here are asset coverage, cash reserves, preferred issuance, Bitcoin exposure, and dividend policy. The company has no meaningful earnings to speak of and this should not be expected to change. In fact, this is by design so that the dividends on SATA can gain return of capital tax treatment. Strive’s operating business does not currently cover the preferred dividend. The company reported $2.8 million of Q1 2026 revenue, a $265.9 million GAAP net loss, and a $295.8 million unrealized loss on digital assets. Bitcoin accounting drove the loss, but SATA’s dividend support still comes from the balance sheet and not recurring earnings. As of June 1, 2026, Strive owns 19,000 BTC (worth $1.27 billion at today’s $67,000 per BTC price), $137.3 million of cash and equivalents, $49.5 million of STRC preferred stock, and 7.5 million SATA shares outstanding. At a 13% annual rate, the dividend burden is about $97.7 million per year. So by their cash alone they can pay over a year of dividends. And when counting the bitcoin, they can pay over 100 years of dividends even if BTC stays flat. Strive's Numbers (Strive) Add all three holdings—cash, STRC, BTC—and the visible asset pool is about $1.46 billion against roughly $751 million of SATA stated amount. That is about 1.9x asset coverage on perpetual preferred equity that never comes due. There is no debt on Strive’s balance sheet, so SATA is the most senior instrument. SATA is basically like high-yield credit with crypto collateral risk, but no obligation to repay principal unless in liquidation. Price Peg Mechanism SATA has a soft price-stabilization mechanism, though this is not a legally obligated peg. Strive aims for an intended range of $99 to $101 per share for SATA, as of March 11 . Strive also said it does not intend to issue new SATA through ATM or follow-on offerings below $100. Here’s how it works. If SATA trades below the target range, Strive can raise the dividend rate to increase the yield and support the price. If SATA trades above the range, Strive can lower the dividend rate to reduce the yield and pull the price back down. There are some restrictions on downward resets: Strive generally cannot reduce the rate by more than 25 basis points plus a SOFR-related adjustment and the rate cannot be cut below the one-month SOFR rate. Also, the company cannot reduce the rate unless prior accumulated dividends have been paid or set aside. Strive says it may abandon the target-range approach at any time without preferred-holder consent, and it may adjust the rate for reasons unrelated to Bitcoin value, credit spreads, or interest rates. So far since March 11, when the range was set to $99 – $101, it has been quite stable. SATA price (Seeking Alpha) New Daily Dividends Strive recently rebranded to the “ Daily Dividend Company ” because it will pay SATA dividends each business day starting June 16, 2026, to holders of record on the prior business day. The company declared $0.0542 per share for each business day from June 16 through June 30, representing the same 13% annual rate. This type of dividend policy is truly unprecedented in capital markets. Realty Income had made a name for itself as the “Monthly Dividend Company,” but Strive is taking it further. I believe this new cadence improves security in several interesting areas. First and most obviously, cash comes back faster which enables faster compounding for the investor who reinvests dividends. Second, because the dividend is paid daily, SATA’s share price will reflect less movement from the smaller daily ex-dividend adjustment. This could yield some perception benefits. Third, and this is more speculative, is that the lack of mark to market volatility from daily dividend payouts could make the options market for SATA especially interesting. This would be a daily compounding structure, which is the closest we have ever seen to the continuous dividends assumptions of the Black Scholes model. I am not completely sure what this means or even if it will be consequential, but I thought this was a very interesting fact that should be noted. Perhaps implied volatility could compress and call options can freely be traded close to the at-the-money price but not have to worry about assignment. Dividend Suspension Protections SATA’s dividend protections are stronger than a normal preferred. To begin, the dividend is cumulative. If Strive skips a dividend, the unpaid amount remains part of the accumulated dividend claim. There is also a penalty feature. If an unpaid dividend remains outstanding, the unpaid amount begins accruing compounded dividends. The penalty rate starts at the regular dividend rate plus 25 basis points, then rises another 25 basis points per month, capped at 20% per year. So for example, at today’s 13% rate, unpaid dividends would start compounding at 13.25%, then 13.50%, then 13.75%, and so on. The penalty applies to unpaid dividend amounts, not the full $100 stated amount. Holders cannot seize Bitcoin or force principal repayment. Still, non-payment becomes increasingly expensive for the company, to the benefit of the SATA investor. Preferred holders may also receive director election rights after prolonged non-payment events. Valuation Supports A Buy At roughly $97, SATA offers a double-digit current yield and a path back to par thanks to the dividend adjustment that will be done if required. A move from $97.32 to $100 adds about 2.8% of price upside. Add the 13% dividend rate, and the one-year simple return can reach the mid-teens if the rate holds and the shares return to the stated amount. On top of that, the cumulative dividends and penalty compounding all make SATA stronger than a standard preferred for long term holding. A Hold rating would fit better above $100, with lower dividend support, faster preferred issuance, or weaker coverage due to adverse Bitcoin price action. Risks Bitcoin downside is the largest risk. SATA holders rank ahead of common equity, but the main economic support is still a massive Bitcoin balance sheet. A sharp BTC drawdown can compress asset coverage quickly. If confidence in this coverage breaks, SATA will trade like distressed credit, possibly at a sizable discount to par. Dividend discretion is the second risk. The dividend is cumulative, but the board must still declare it. If declarations stop or legal capacity becomes constrained, holders move from income collection to arrearage enforcement. Furthermore, Strive has no legal obligation to assure a $100 trading price. While they have worked to ensure it and their communications have been focused on emphasizing this feature, the fact is that the Board may choose another path that is in the best interest of the company. Therefore, we cannot deny that the variable rate might get lowered even if it might break the $100 target price. This may happen during times of extreme market stress. A related risk to this is that if SATA becomes extremely popular, the company likely will reduce the dividend if doing so would not upset the trading target. Capital structure growth is another risk. New SATA or parity preferred can fund more assets, but it also creates new equal-ranking claims. Issuance quality will determine whether new capital strengthens or dilutes the preferred cushion. At this time, the company indicates that SATA is the only preferred security it plans to issue and that it plans to make it the most senior security in the capital structure. The Bottom Line I view SATA as a Buy below $100. The 13% dividend is attractive. The daily payment cadence improves the cash-flow profile for investors and the overall reputation of the company. The cumulative dividend claim, penalty compounding, and governance backstop give holders more protection than a standard preferred. Around $97, the yield, coverage, and path back to par create a favorable speculative income setup.

4 Jun 2026, 10:13

Strategy Didn’t Sell Bitcoin in May, According to Polymarket

Polymarket has officially finalized one of this year’s most controversial events. It’s a prediction market on whether Strategy will sell Bitcoin in May, and it resolved to “No,” meaning that, according to the platform, the company didn’t sell BTC that month. Here’s the kicker: the firm did sell BTC in May, as confirmed not only by its executives but also by an official filing with the US Securities and Exchange Commission. So what’s the reason for the resolution, you may ask? Well, the fact that confirmation came after the deadline. The decision rests entirely on the timing of the announcement. The filing came on June 1st (which is what literally everyone expected, because that’s when these filings are… filed), after the May 31 deadline had passed. Polymarket’s decision has drawn massive criticism not only because of the outcome, but because the platform added a clarification after the market had closed, stating that announcements made after the deadline would not count toward resolution, as seen in the screenshot below. Source: TradingView What is even odder is that all subsequent time frames for the new markets for the same event lack this “additional context,” meaning traders can be easily misled again. Critics argue that this effectively changed the market’s rules after traders had already taken their positions, which is objectively true. Many traders started taking positions on June 1st (which is after the deadline), because the market hadn’t been closed by Polymarket yet. A May Sale, a June Filing To give further context on the happening – at the center of this dispute is the difference between when an event took place and when it became publicly confirmed – these are two completely separate events. One is tied to an objective outcome; the other is tied to the announcement of that outcome. Had the event been framed as “ MicroStrategy confirmed to have sold any of its Bitcoin by 11:59 PM ET on May 31,” then there is no room for interpretation. But the market was “ MicroStrategy sells any of its Bitcoin by 11:59 PM ET on May 31,” which they did. It was just announced later. Polymarket didn’t treat the actual outcome as decisive – it treated the time of the announcement. Even though this distinction may seem technical, it has huge implications for traders. A market framed around whether a company sold Bitcoin can produce one answer if judged by the transaction date, and the opposite answer if judged by the disclosure date. A Rule Changed After the Fact What made this entire thing even more contentious is the fact that Polymarket added its “post-deadline announcements do not count” rule only after the market had been closed. This raises very serious questions. Prediction markets depend on participants knowing the settlement criteria before they trade. Retroactively changing those criteria, especially after the relevant event has occurred, risks undermining confidence in the platform’s broader neutrality. A trader claimed to have lost around $500K after backing the “Yes” side, while other observers criticized the decision. The controversy has also sparked broader concerns about how prediction markets handle events that occur before a deadline but are confirmed only afterward. So, to put it in simple terms – Strategy did sell BTC in May according to its own filing. According to Polymarket, it didn’t. The post Strategy Didn’t Sell Bitcoin in May, According to Polymarket appeared first on CryptoPotato .

4 Jun 2026, 10:06

Crypto stocks retreat as Bitcoin extends five-day losing streak

More on Bitcoin USD Bitcoin Potential Near-Term Bullish Reversal Emerging From The Sub-$70K Plunge Market Brief: What Is Strategy Afraid Of? The 'Never Sell' Myth Shattered Bitcoin Breaks Below $70,000 As Sell-Off Continues Bitcoin lags equities as ETF outflows mount; Strategy challenges 'Never Sell' narrative Bitcoin bloodbath below $50K gets closer: rising odds & what went wrong

4 Jun 2026, 10:05

Is Ethereum headed for $1,380 after losing key support below $1,800?

Ethereum (ETH) slipped below $1,800 on Thursday, marking its first drop to this level since February 2026. The bearish performance comes amid accelerating spot selling and increased distribution from long-term holders. The move adds to a broader wave of weakness across the crypto market, driven by sustained risk-off sentiment. Technical indicators suggest that the selloff might continue for a while, with the $1,380 support level a likely target. Long-term holders accelerate distribution Ethereum is down 5% in the last 24 hours and is now trading around the $1,770 level. The bearish performance comes as on-chain data shows a clear rise in selling activity from previously inactive wallets. The Age Consumed metric , which tracks movement of dormant or long-held tokens, spiked over the past two days as ETH declined. This suggests that long-term holders (LTHs) are increasingly participating in sell-offs. Historically, a surge in this metric has aligned with periods of heightened distribution pressure, often reinforcing downside momentum. Furthermore, the realised profit/loss metric indicates that the most recent selling has come from underwater positions. While daily losses remain moderate, they have been consistently negative since April. This suggests that the selling pressure is being driven by risk aversion, holders are exiting positions at a loss, and confidence remains weak across recent market participants. This steady increase in realised losses points to sustained distribution rather than short-term profit-taking. On the institutional side, demand for Ethereum products has been declining in recent weeks. US spot Ethereum ETFs have recorded 16 consecutive days of net outflows, the longest streak since their launch in July 2024. The trend highlights fading institutional inflows at a time when spot markets are already under pressure. Despite falling prices, derivatives positioning remains mixed. The Open Interest remains above $26 billion, while the funding rate is still positive. Furthermore, the market is dominated by long positioning. This suggests traders are still betting on a near-term rebound, even as spot prices continue to weaken. Ethereum technical outlook: Bearish trend remains intact The ETH/USD 4-hour chart is extremely bearish as Ethereum has lost 11% of its value in the last seven days. At press time, Ethereum is trading below the 20-day EMA, 50-day EMA, and 100-day EMA (all clustered between roughly $2,030 and $2,245), reinforcing the bearish trend despite deeply oversold conditions. The Relative Strength Index (RSI) of 27 means that Ethereum is currently in the oversold territory. The MACD lines are also within the negative region, adding further confluence to the bearish narrative. If the bulls regain control, they would target the first major support-turned-resistance level at $1,909, with another level at $2,018. A daily close above these levels could allow the bulls to extend the rally and target the 20-day EMA, 50-day EMA, and 100-day EMA (all clustered between roughly $2,030 and $2,245). However, if the selloff persists and ETH drops below the $1,740 support, it could extend its decline towards the next major level at $1,524. The weekly chart suggests a floor around the $1,380 level, last tested on March 31 2025. The post Is Ethereum headed for $1,380 after losing key support below $1,800? appeared first on Invezz

4 Jun 2026, 10:02

Bitcoin Price Prediction: $50K Risk Meets $62K Breakdown Target in Bitcoin Crash Test

Bitcoin’s drop below $72,000 has split analysts between two key downside zones: the $50,000-$54,000 MVRV support area and the $61,000-$62,000z channel breakdown target. The latest charts show Bitcoin near a major technical test, with one model warning of deeper losses while another suggests the main bearish target has already been reached. Bitcoin Price Risks Deeper Drop as MVRV Bands Show Support Near $50K Crypto analyst Ali Martinez warned that Bitcoin could face further downside after breaking below the $72,000 level, citing Glassnode's MVRV Pricing Bands model. Bitcoin MVRV Pricing Bands. Source: Glassnode / Ali Martinez on X The chart shows Bitcoin trading near $67,180, below the MVRV mean band at $94,163 and slightly under the -0.5 deviation band at $72,444. According to the model, Bitcoin has entered a weaker zone where historical support becomes less dense. The next major support area on the chart sits between the realized price level at $53,909 and the -1.0 deviation band at $50,726. Martinez argued that this range could become Bitcoin's next downside target if current support fails to hold. MVRV (Market Value to Realized Value) Pricing Bands measure how far Bitcoin's market price deviates from its realized price, which represents the average cost basis of coins in circulation. Historically, upper bands have often aligned with cycle tops, while lower bands have frequently acted as accumulation and support zones during corrections. The chart shows Bitcoin previously finding support near the lower MVRV bands during major pullbacks in 2022 and 2023. If that pattern repeats, the $50,000-$54,000 area could become an important region for traders watching the current decline. However, Bitcoin remains above both the realized price and the -1.0 deviation band. As long as those levels hold, the MVRV model suggests the long-term bull market structure would remain intact despite the ongoing correction. Bitcoin Price Hits Technical Breakdown Target as Analyst Says Bearish Scenario May Be Exhausted Crypto analyst SuperBitcoinBro said Bitcoin has already reached the downside target generated by its recent breakdown from an ascending channel, suggesting the technical move may now be complete. Bitcoin Daily Chart (BTC/USD). Source: SuperBitcoinBro on X / TradingView The chart shows Bitcoin falling sharply after breaking below the lower boundary of an ascending channel that had guided price action since February. Using the channel's height as a measured-move target, the analyst projected a decline toward the $61,000-$62,000 region. Bitcoin has since dropped to approximately $63,869 and briefly tested the projected target zone. According to SuperBitcoinBro, the market reacted almost exactly where the channel breakdown model suggested it would. The chart also highlights several Fibonacci retracement levels, including the 38.2% level near $74,000, the 50% level around $79,000, and the 61.8% level close to $84,000. Bitcoin lost all three levels during the recent decline before reaching the measured downside objective. SuperBitcoinBro argued that forecasts calling for substantially lower prices are not currently supported by this technical setup because the primary breakdown target has already been fulfilled. The analyst noted that while further downside remains possible, the chart suggests Bitcoin has reached a key area where selling pressure could begin to ease. The orange trendline and the 200-week moving average near the $61,600 area remain important support levels that traders may continue to watch for signs of stabilization.

4 Jun 2026, 10:02

Saylor Sells Bitcoin: Is His Cult Crumbling?