Fidelity: preferred stock has funded purchases of 135,979 Bitcoin
- —Preferred stock financed 135,979 BTC in purchases, over 0.5% of max supply
- —Issuance between March and May funded more than 95,000 BTC, raising over $7 billion
- —For comparison, spot Bitcoin ETFs accumulated 888,185 BTC in their first year
- —Preferred holders face issuer, liquidity, rate and inflation risks on top of BTC exposure
Why it matters: Preferred stock from treasury companies has become a distinct source of Bitcoin demand, but it hinges on BTC gains outpacing dividend costs.
Source: crypto.news