Fidelity Digital AssetsIt indicates that the perpetual preferred stocks have provided funds for the purchase of 135,979 bitcoins, which makes the financing model adopted by these vault-style companies another source of demand for this cryptocurrency.
- Fidelity stated that as of October 5th, the issuance of preferred stocks had provided financing for the purchase of 135,979 BTC.
- This financing model depends on whether the increase in Bitcoin price can exceed the cost of dividend payments.
- In addition to bearing exposure related to Bitcoin, preferred stockholders also face risks from the issuer, liquidity, and interest rates.
Research analyst Zack Wainwright stated in a report on October 20th that as of October 5th, these purchase volumes amounted to more than 0.5% of Bitcoin's maximum supply. The report specifically mentioned Strategy and cited the declaration documents of Strive.
The approach of the relevant companies is to issue preferred stocks that pay dividends, and use the funds raised to purchase Bitcoin. Fidelity links this practice to an investment logic: as legal tender depreciates, the limited supply of Bitcoin may help to maintain its purchasing power.
The report also clearly identifies the core assumptions of this model.
"For issuers, this strategy only works when the appreciation of the underlying asset exceeds the cost of earnings."
Fidelity stated that between March and May, the issuance of preferred stocks provided financing for the purchase of over 95,000 bitcoins, with a total fundraising amount exceeding $7 billion. Fidelity compared this demand with the 888,185 bitcoins accumulated by spot Bitcoin exchange-traded products in their first year.
The risks faced by preferred stockholders are not the same as those of investors who directly hold Bitcoin. Another investor guide from Fidelity explains that preferred securities possess characteristics of both stocks and debt instruments, with specific terms varying depending on the issuance plan.
Perpetual securities do not have a predetermined maturity date, and some preferred stock issues allow the issuer to suspend or defer payments. In the event of a company's bankruptcy, holders are usually compensated before common stock shareholders, but after bondholders.
Fidelity's guidelines also point out that preferred stockholders are exposed to inflation risks, as rising prices will erode the purchasing power of future dividend payments. An increase in market interest rates typically drives down the prices of existing preferred securities, and limited trading liquidity may force investors to sell at prices below par value.
Therefore, this Bitcoin report argues that the success of the preferred stock model depends not only on the long-term performance of this cryptocurrency but also on the financial condition of the companies issuing these shares.












