Strategy and Strive are facing a growing challenge as they balance $BTC purchases with rising dividend obligations on their perpetual preferred securities. According to CoinDesk, Fidelity reported that these securities helped finance the acquisition of 135,979 BTC from 2025 through October 5, while Bitwise expects Bitcoin ETFs to remain the primary source of market demand.
The preferred securities market is valued at approximately $12 billion, but continued issuance is increasing dividend costs. Strategy spent $193 million buying back $STRC shares while purchasing 267 BTC and increased its repurchase authorization to $3 billion. However, trading below par could make new issuance less attractive, putting additional pressure on funding strategies.
Meanwhile, U.S. spot $BTC ETFs have attracted around $57 billion in net inflows and hold approximately $106 billion in assets. This highlights the continued importance of ETFs as a major driver of Bitcoin demand, while preferred securities face the challenge of maintaining investor interest amid rising payout obligations.
