Bitcoin Preferred Stock Funds 135,979 BTC, but Adds Costs

Bitcoin treasury firms Strategy and Strive have used preferred-stock financing to acquire 135,979 BTC since the start of 2025 through 5 October. The purchases represent more than 0.5% of Bitcoin’s maximum supply, and the preferred-stock market is valued at about $12 billion, according to Fidelity Digital Assets. Perpetual preferred shares have no fixed maturity date and appeal to investors seeking income without holding Bitcoin directly. But issuing more shares increases recurring dividend obligations. New fundraising also depends on investor appetite and share prices: if preferred shares trade below par, issuance may become less attractive, while buybacks can compete with Bitcoin purchases for capital. Strategy recently spent $193 million buying back STRC preferred shares while purchasing 267 BTC, and raised its preferred-share buyback authorization to $3 billion. Buybacks could reduce future dividend costs, but may limit funds available for Bitcoin accumulation. By comparison, US spot Bitcoin ETFs have attracted about $57 billion in cumulative net inflows and hold roughly $106 billion in assets. Bitwise expects ETFs to remain the larger source of Bitcoin demand, with preferred stock serving as a secondary channel. The financing model could support Bitcoin demand when market conditions are favorable, but its contribution may weaken if sentiment or share prices decline.