News about preferred stock

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.

JPMorgan Chase (JPM) has declared dividends on its outstanding Series DD, EE, GG, JJ, LL, MM and NN preferred stock. Details are available on the Firm's Investor Relations website.

Strive (ASST) is launching an IPO of a new perpetual preferred stock, SATS, offering a 15% fixed dividend. It aims to sell 5 million shares at $100 each, raising $500 million for bitcoin purchases, income-producing assets or stock buybacks. SATS ranks junior to the existing SATA preferred, which pays a variable rate currently at 13%, and the company plans a dividend reserve covering the first 18 months of SATS dividends at closing. Last week Strive bought 3,311 bitcoin, bringing holdings to 32,773 coins worth about $2.7 billion, up from below 20,000 coins three months ago.