Perpetual preferred stock offerings from Bitcoin treasury companies have financed the purchase of 135,979 BTC in just over a year, according to a report from Fidelity Digital Assets. The figure, measured as of October 5, 2026, represents more than 0.5% of Bitcoin's total supply.
The report, published October 20, 2026, frames these instruments as a source of demand for Bitcoin and as a bridge to the fixed-income market, which Fidelity estimates at around $150 trillion.
How the structure works
A perpetual preferred stock functions like a bond that never matures. Investors provide cash, the company pays a steady dividend, and there is no date when the principal is returned. For Bitcoin treasury companies, this allows them to raise money from income-focused investors and use it to buy more Bitcoin without issuing new common shares or taking on traditional debt.
Fidelity also asserts that these vehicles can offer yields that surpass many traditional cash equivalents.
Issuance and Bitcoin purchases
The pace of issuance picked up sharply in 2026. Between March and May, issuers raised more than $7 billion through these offerings, according to Fidelity. That capital went toward more than 95,000 BTC during those three months alone. April was the peak, with Fidelity's data showing nearly 30,000 BTC purchased in one week that month.
Comparison with spot ETPs
Fidelity was careful not to oversell the comparison with spot Bitcoin exchange-traded products. Those funds launched in January 2024 and gathered 888,185 BTC in their first year. Fidelity's argument focuses on the investor base these products reach rather than raw volume.
Origins of the model
The model traces back to Strategy, which launched its first perpetual preferred stock product in July 2025. That issuance opened the door for others, including Strive, which Fidelity names alongside Strategy as a pioneer of the structure. In commentary from September 2026, Fidelity highlighted the potential of preferred equity as a form of Bitcoin-backed digital credit, pointing to its appeal for fixed-income investors.
Risks and metrics to watch
Money raised through perpetual preferreds goes directly into Bitcoin purchases, so every successful offering translates into buying pressure on the open market. However, the model carries risks. Perpetual preferred stocks come with ongoing dividend obligations, and those payments do not stop if Bitcoin's price falls. Issuers are effectively promising fixed income backed by a volatile asset. If Bitcoin enters a prolonged downturn, the market will test whether that promise holds up and whether investors keep lining up for new issuances.
For investors, the key metrics to track are the volume of new preferred issuance and how much of it converts into Bitcoin purchases. The yields these products offer relative to cash equivalents will also signal whether fixed-income buyers stay interested.
