Written by: Micah Zimmerman

Translated by: AididiaoJP, Foresight News

Bitcoin-supported preferred stock, led by Strategy Company and followed closely by emerging players like Strive, has grown to about $13 billion in market size in less than two years. These products are attracting large amounts of capital by offering high yields.

A research report published in June 2026 by BitcoinTreasuries.net in collaboration with the DeFi protocol Apyx points out that this expansion has only just begun. The report tracks preferred stock issued by publicly traded companies, backed by their own Bitcoin holdings. The total market capitalization of such securities is currently approximately $13 billion, accounting for nearly 1% of the global $13 trillion preferred stock market. The authors of the report predict that this percentage will rise to 3% to 5% by 2030, and potentially reach 10% in the long run, which would be $1.3 trillion.

This financial tool is at the core of the financing dilemmas faced by companies holding Bitcoin as treasury assets. Enterprises like Strategy Company, led by Michael Saylor, seek to acquire long-term capital to purchase more Bitcoin while avoiding diluting common stock shareholder equity and do not want to take on debt with fixed repayment terms. However, the extreme fluctuations in Bitcoin prices make this balance difficult.

Bitcoin peaked at nearly $124,720 in October 2025, then fell below $60,000 by mid-June 2026, experiencing a maximum drawdown of about 47% within eight months.

Preferred stock provides a way to bypass this dilemma. When a company issues preferred stock, the number of common shares does not increase, allowing existing shareholders to avoid dilution of their equity. These shares are classified as equity rather than debt, meaning there is no maturity date and no mandatory repayment. In exchange, holders receive dividends that are prioritized over common stock dividends.

For income-driven investors who are kept out by the potential upside of Bitcoin prices, this structure transforms Bitcoin's volatility into a stable income product.

Preferred Stock Drives Bitcoin Expansion

These yields far exceed those available in the fixed-income market. The effective yields of the five major Bitcoin-supported preferred securities in the United States range from 10.8% to 15.2%, while high-yield savings accounts offer returns of only 3% to 4%.

Products from Strategy Company dominate the market, with a combined market capitalization of nearly $12.5 billion for STRF, STRC, STRK, and STRD. The asset management company Strive, which has transitioned into a Bitcoin treasury company, issued its fifth security SATA, valued at approximately $330 million.

The core point of the report is that demand far exceeds supply. Fixed income institutions like mutual funds, banks, pensions, and insurance companies hold $10.9 trillion in assets in U.S. Treasury bonds. If they were to allocate just 10 to 20 basis points of that to Bitcoin preferred stock, it would generate demand of $10.9 billion to $21.8 billion, enough to support the report's near-term market forecasts.

However, supply is limited by the amount of Bitcoin available for collateral. Of the 20 million Bitcoins in circulation, the holdings of exchanges, spot ETFs, and mining companies are excluded as they belong to client assets or operational reserves.

What remains is the 1.26 million Bitcoins held by corporate treasuries, valued at approximately $8.3 billion. Strategy Company alone holds about 845,000 of these, accounting for 67%.

The report emphasizes that collateral coverage is key to security. Bitcoin-supported preferred stock maintains a coverage ratio of 3.8 to 4.5 times, meaning that every $1 of preferred equity corresponds to $3.8 to $4.5 of Bitcoin.

In contrast, the median for large bank residential mortgages in the third quarter of 2025 was $0.76 of loans for every $1 of property value. "The safety of these instruments is significantly higher than 95% of the bonds in the market," said Jeff Walton, Chief Risk Officer of Strive, in the report, "because they are supported by real capital, not future cash flows."

Not all companies qualify to issue such securities. Walton listed the requirements: a clean balance sheet (no preferred secured debt), supporting a minimum issuance size of $100 million, and a team experienced in tax treatment, covenant design, and dividend policy.

He noted that mortgaged Bitcoins are prioritized over preferred equity, hindering most transactions. Strive itself paid off debts inherited from the acquisition of Semler Scientific through a $225 million issuance of SATA in January, keeping all its Bitcoins unencumbered.

Risks are more structural than hidden. Strategy’s common stock MSTR acts as a volatility amplifier, having fallen more than Bitcoin over the past year. "When Bitcoin prices fall, Strategy's stock price falls even harder," said Tony Lau, an investment partner at Primitive Ventures, describing the potential chain reaction in stock prices.

Three of Strategy's four preferred stocks are trading below a face value of $100. The ability to pay dividends depends on whether the company can continuously raise capital when Bitcoin prices rise, although both Strategy and Strive have disclosed sufficient cash reserves to cover at least 12 months of payments.

Strategy CEO Phong Le told investors in February that unless Bitcoin falls to $8,000 and stays there for five or six years, the company's balance sheet will remain strong.

Currently, the report describes preferred stock as a tool at a "0 to 1 moment"—market demand exceeds the quantity that issuers can provide, a gap that favors companies willing to create such products.