Strategy and Strive Acquire 135,979 Bitcoins Through Preferred Stock Financing

As of October 5, companies like Strategy and Strive have acquired 135,979 bitcoins through preferred stock financing, accounting for over 0.5% of the maximum bitcoin supply; the related preferred stock market size is approximately $12 billion. Perpetual preferred stocks have no fixed maturity date, alleviating refinancing pressure and attracting income-focused investors who are reluctant to hold bitcoins directly, but an increase in issuance size may also raise dividend expenses. The financing for bitcoin acquisition relies on preferred stocks trading at or near par value; if the price falls below par, the attractiveness of new issuances may decline, and the company may turn to buybacks. CoinShares' research director James Butterfill stated that Strategy's latest weekly report shows the company spent $193 million to repurchase STRC, while simultaneously buying 267 bitcoins and increasing the preferred stock buyback authorization limit to $3 billion. Buybacks can reduce future dividend costs but also compete for funds with bitcoin purchases. Bitwise's research director Ryan Rasmussen expects that ETFs will remain a larger source of bitcoin demand in the long term, while perpetual preferred stocks cover different groups of income-focused investors, providing another source of demand support for the market. Butterfill believes that preferred stocks may amplify market cycles: when financing conditions are favorable, they support bitcoin purchases, but this support may weaken when market sentiment deteriorates.

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