Bitcoin treasury companies Strategy (MSTR) and Strive (ASST) must balance funding bitcoin purchases with paying dividends on their perpetual preferred stock, their main fundraising tool, according to Fidelity Digital Assets and analysts. Fidelity says preferred stocks have financed purchases of about 136,000 bitcoin in the 20 months since launch, and estimates the bitcoin-focused preferred market at roughly $12 billion. Bitwise expects ETFs to remain the larger demand source over the long run, while preferreds attract yield investors that ETFs have not reached. As the number of shares grows, dividend payments rise; CoinShares' James Butterfill noted that when preferreds trade below par, new issuance becomes less attractive and companies may favor buybacks over bitcoin purchases. Strategy spent $193 million repurchasing STRC in its latest weekly update and raised its preferred-stock repurchase authorization to $3 billion.
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Related tickers and likely impact
BTC/USDT
• NeutralBitcoin
Relevance: low
| Market | Crypto |
|---|---|
| Exchange | Binance |
| Sector | Layer 1 |
| Market cap | $1.6T |
| Close on 10/23/2026 | 81,189.43 |
| Change that session | -0.28% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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Strategy, formerly MicroStrategy, became a Bitcoin treasury company after co-founder Michael Saylor made BTC its primary reserve asset in 2020. Between May and August 2026 it sold 6,948 BTC for about $432.5 million, moving away from its “never sell Bitcoin” stance toward a goal of never being a net seller, and it resumed buying at the end of August. Its purchases were funded largely by convertible notes and later by preferred stock, and STRC's fall below its $100 par value in June 2026 cut off a key funding route. As Bitcoin fell in 2026, mNAV, the premium over net asset value, dropped to where the market valued the company below its Bitcoin holdings, and the company reported a $12.4 billion loss for Q4 2025. In July 2026 it introduced “net Bitcoin per share,” which subtracts preferred stock and out-of-the-money convertible debt before dividing Bitcoin holdings by shares.
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