Bitcoin treasury firms purchase 135,979 BTC through preferred stock financing

ChainCatcher report: Bitcoin treasury companies such as Strategy and Strive have raised funds through preferred shares to acquire 135,979 bitcoins, exceeding 0.5% of Bitcoin’s maximum supply; the related preferred share market size is approximately $12 billion. Perpetual preferred shares have no fixed maturity date, reducing refinancing pressure and attracting income-focused investors unwilling to hold Bitcoin directly; however, increased issuance also raises dividend payouts. Sustained financing for Bitcoin purchases relies on preferred shares trading at or near par value; if prices fall below par, the attractiveness of new issuances may decline, prompting companies to shift toward repurchases. James Butterfill, Research Director at CoinShares, noted that Strategy’s latest weekly report showed the company spent $193 million to repurchase STRC shares while simultaneously buying 267 bitcoins, and increased its preferred share repurchase authorization to $3 billion. Repurchases can reduce future dividend costs but may compete with Bitcoin purchases for capital. Ryan Rasmussen, Research Director at Bitwise, expects ETFs to remain the larger long-term source of Bitcoin demand, while perpetual preferred shares serve a distinct segment of income-oriented investors, providing additional demand support. Butterfill believes preferred shares may amplify market cycles: favorable financing conditions support Bitcoin buying, but this support may weaken as market sentiment turns negative.