Fidelity just put a number on one of bitcoin's quietest demand engines.
A Fidelity Digital Assets report (Oct 20, analyst Zack Wainwright) finds perpetual preferred-stock issuances have funded the purchase of 135,979 BTC through Oct 5 — over 0.5% of bitcoin's max supply. Between March and May alone, issuers raised $7B+ to buy 95,000+ BTC.
The mechanics: treasury companies sell dividend-paying preferred shares — perpetual, no maturity — and use the proceeds to buy bitcoin on exchanges and OTC desks, without diluting common shareholders. Fidelity compares the channel with the 888,185 BTC US spot ETFs gathered in their first year: smaller, but tapping a different pool of income-seeking investors.
Fidelity is blunt about the math that makes it work: "the strategy only works if the appreciation of the underlying asset outpaces the cost of yield." Preferred holders also sit below bondholders, and issuers can suspend dividends under stress.
Not financial advice — do your own research.
So the real question: when — not if — bitcoin's next drawdown tests that dividend math, how many of these issuers keep paying to hold?
$BTC #Bitcoin #CryptoNews #Fidelity #CorporateTreasury
A Fidelity Digital Assets report (Oct 20, analyst Zack Wainwright) finds perpetual preferred-stock issuances have funded the purchase of 135,979 BTC through Oct 5 — over 0.5% of bitcoin's max supply. Between March and May alone, issuers raised $7B+ to buy 95,000+ BTC.
The mechanics: treasury companies sell dividend-paying preferred shares — perpetual, no maturity — and use the proceeds to buy bitcoin on exchanges and OTC desks, without diluting common shareholders. Fidelity compares the channel with the 888,185 BTC US spot ETFs gathered in their first year: smaller, but tapping a different pool of income-seeking investors.
Fidelity is blunt about the math that makes it work: "the strategy only works if the appreciation of the underlying asset outpaces the cost of yield." Preferred holders also sit below bondholders, and issuers can suspend dividends under stress.
Not financial advice — do your own research.
So the real question: when — not if — bitcoin's next drawdown tests that dividend math, how many of these issuers keep paying to hold?
$BTC #Bitcoin #CryptoNews #Fidelity #CorporateTreasury