# Bitcoin Purchases Financed by Preferred Stock Reach 135,979 BTC

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/36378
Published: 2026-10-21T05:37:37.000Z
Updated: 2026-10-21T05:37:37.000Z
Section: Investing

> Issuers raised more than $7 billion from March through May 2026 to buy Bitcoin. The financing strategy depends on gains exceeding dividend costs.

Perpetual preferred stock financed purchases of 135,979 Bitcoin (BTC) through Oct. 5, 2026, as companies used share-sale proceeds to expand their holdings.

Companies selling bitcoin-focused preferred shares raised more than $7 billion from March through May 2026 to buy BTC. The shares offer investors dividends, while issuers use the proceeds to acquire Bitcoin.

Purchases funded through the structure exceeded 22,000 BTC in March and 48,000 BTC in April. Nearly 25,000 BTC followed in May, bringing the three-month total to more than 95,000 BTC. Further purchases lifted the cumulative figure to 135,979 BTC by Oct. 5.

“Bitcoin’s supply and demand dynamics make it a unique and potentially compelling option alongside the issuance of perpetual preferred stock,” Fidelity Digital Assets research analyst Zack Wainwright wrote in an Oct. 20 analysis.

Perpetual preferred shares have no maturity date and pay dividends. When the shares trade above par, an issuer can sell more of them and use the cash to buy Bitcoin. The strategy works as intended only if Bitcoin’s appreciation exceeds the cost of those dividend payments.

That condition makes the financing route dependent on both the asset and the companies issuing the shares. Investors in the preferred stock face risks tied to Bitcoin’s long-term performance and to the issuer, even though the security pays a dividend.

The purchases are smaller than those made through spot Bitcoin exchange-traded products, which accumulated 888,185 BTC in their first year after launching in January 2024. The two figures cover different periods: the preferred-share total runs through Oct. 5, 2026, while the exchange-traded product figure covers the year following launch.

Fidelity plans to track whether preferred shares continue to generate Bitcoin demand and whether additional products emerge.