Fidelity: dividend-seeking investors could become a new driver of bitcoin demand
- —Fidelity pegs the bitcoin-linked perpetual preferred market at about $12 billion
- —Such vehicles had bought 135,979 BTC by October 5, including over 95,000 in March-May
- —Strive raised $630 million via its SATS preferred offering at a 15% dividend on $100 par
- —Risk: weak BTC gains could strain issuers' dividend obligations
Why it matters: A new channel of fixed-income capital could strengthen bitcoin demand, but it exposes issuers to dividend pressure if prices fall.
Source: Bloomingbit