Strategy (MSTR), Strive (ASST) must balance bitcoin (BTC) purchases, preferred stock dividends
Bitcoin treasury firms such as Strategy and Strive are using perpetual preferred shares to raise funds for bitcoin purchases, but must balance new issuance against recurring dividend costs and investor demand. Fidelity estimates the bitcoin-focused preferred market at about $12 billion; these offerings have funded purchases of roughly 136,000 BTC in 20 months. The securities appeal to yield-seeking investors but carry risks tied to issuer performance and market conditions. If shares fall below par, fundraising becomes less attractive, potentially weakening their support for bitcoin demand. Strategy has recently repurchased preferred shares, competing with purchases for capital, and has also sold some bitcoin to cover dividends. Analysts view preferreds as a secondary, more cyclical demand source alongside spot bitcoin ETFs.
