$BTC
The perpetual preferred stock financing channel has already helped Bitcoin treasury companies buy about 136,000 BTC.
Fidelity Digital Assets reports that, as of October 5, it had facilitated purchases of 135,979 BTC—more than 0.5% of the total supply. From March to May alone, over $7 billion was raised to buy about 95,000 BTC. This preferred stock market is worth around $12 billion. That’s small compared with the roughly $150 trillion global fixed-income market, but it has become another source of steady buying pressure alongside spot ETFs. The catch: Bitcoin’s price gains must exceed the dividend costs, or the model will break down.
Takeaway: This is a structural source of buying pressure and a slow-moving trend. Don’t treat preferred stock as a guaranteed-return cash substitute.
Do you believe continued buying of preferred stock can provide a floor for Bitcoin, or will dividend costs bring this strategy crashing down first?
Note: This analysis is for informational purposes only and does not constitute investment advice!
#BTC
The perpetual preferred stock financing channel has already helped Bitcoin treasury companies buy about 136,000 BTC.
Fidelity Digital Assets reports that, as of October 5, it had facilitated purchases of 135,979 BTC—more than 0.5% of the total supply. From March to May alone, over $7 billion was raised to buy about 95,000 BTC. This preferred stock market is worth around $12 billion. That’s small compared with the roughly $150 trillion global fixed-income market, but it has become another source of steady buying pressure alongside spot ETFs. The catch: Bitcoin’s price gains must exceed the dividend costs, or the model will break down.
Takeaway: This is a structural source of buying pressure and a slow-moving trend. Don’t treat preferred stock as a guaranteed-return cash substitute.
Do you believe continued buying of preferred stock can provide a floor for Bitcoin, or will dividend costs bring this strategy crashing down first?
Note: This analysis is for informational purposes only and does not constitute investment advice!
#BTC