Bitcoin treasury companies like Strategy (MSTR) and Strive (ASST), whose purchases help maintain demand for the largest cryptocurrency, have a tough balancing act, according to Fidelity Digital Assets and analysts who spoke to CoinDesk.
On the one hand, they need cash to fund their purchases. On the other, they need to maintain investor appetite for new sales of the perpetual preferred stock that is their favored fundraising vehicle. As the number of shares in circulation grows, so do the dividend payments.
The securities, which sit between debt and common equity in the capital structure with regular payouts and no voting rights, have financed purchases of some 136,000 bitcoin in the 20 months since their introduction, Fidelity research analyst Zack Wainwright wrote in a Tuesday report. That’s more than 0.5% of the cryptocurrency’s maximum supply.
Strategy, the largest corporate bitcoin holder, is the dominant company in the market. Its preferred shares — it has five different classes — make it a bellwether for the model’s durability. Its first offering, STRK, debuted in February 2025.
Fidelity puts the bitcoin-focused preferred market at roughly $12 billion. The global fixed-income market is $150 trillion, suggesting there’s room for growth.
By selling preferred shares that offer dividends without a fixed maturity, the companies reduce refinancing pressure while attracting investors reluctant to own bitcoin directly.
“Perpetual preferreds have brought bitcoin to income investors, a group that ETFs never reached,” said Mark Palmer, a senior equity research analyst at StoneX.
Ryan Rasmussen, the head of research at Bitwise, also sees the products attracting buyers who might avoid bitcoin exchange-traded funds, though he expects the ETFs to remain the bigger demand channel.
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