Perpetual preferred shares funded 136,000 BTC purchases, but Strategy now faces dividend and buyback strain
Perpetual preferred stock has become a major funding tool for bitcoin treasury companies such as Strategy and Strive, opening the door to income-focused investors who may not want direct exposure to BTC. According to Fidelity Digital Assets analyst Zack Wainwright, these securities have financed the purchase of about 136,000 BTC over the past 20 months, or more than 0.5% of bitcoin’s maximum supply. Fidelity estimates the bitcoin-focused preferred market at roughly $12 billion, still tiny next to the $150 trillion global fixed-income market. Analysts interviewed by CoinDesk said the structure now faces a tougher test. As more preferred shares are issued, dividend obligations keep rising. If the securities trade below par, new issuance becomes less attractive and companies may need to spend cash on buybacks instead. CoinShares’ James Butterfill said Strategy’s latest weekly report showed $193 million spent repurchasing STRC while only 267 BTC were bought over the same period, and that the company raised its preferred buyback authorization to $3 billion. He also said Strategy had previously sold some bitcoin to meet preferred dividend payments. Analysts added that U.S. spot bitcoin ETFs remain the larger demand channel, with about $57 billion in cumulative net inflows and roughly $106 billion in assets under management.
