Author: Jeff Park

Translation: Deep Tide TechFlow

Deep Tide Overview: Preferred shares were once an exclusive financing tool for banks and insurance companies, but today crypto companies like Strategy have transformed them into a highly liquid, sustainably traded asset class. More importantly, this path has extended from crypto to traditional tech—Alphabet and Micron are using it to finance AI infrastructure, with single transactions reaching $80 billion. This is no longer a small circle game.

In 2026, trading activity in crypto company preferred shares accelerated sharply, with the monthly trading volume standardized by face value reaching approximately $13 billion in June. This leap was primarily driven by STRC and an increasing number of new preferred shares being listed, transforming the custom financing niche market once dominated by financial institutions (banks and insurance companies) into a broader, more liquid, and increasingly evergreen asset class.

In addition to higher trading volumes, a key signal is the maturation of the preferred share market itself. As liquidity deepens, these instruments have become more efficient not only in coupon rates and issuer quality but also in secondary market depth, relative value, and the persistence of investor demand. This evolution is starting to extend beyond crypto: in June, Alphabet launched its first convertible preferred stock offering as part of an over $80 billion equity financing to fund AI infrastructure; while Micron announced the issuance of $3.75 billion in convertible preferred shares as part of a $7 billion capital raise for AI expansion, highlighting the increasingly important role of preferred shares as a scalable financing tool across industries.

Note: The selected range includes trading volumes for STRK, STRF, STRD, STRC, SATA, and BMNP standardized by face value. The face value standardized turnover rate is calculated as the reported number of traded shares multiplied by the stipulated liquidation priority of $100 per security. It does not represent actual dollar trading volume and cannot solely establish market liquidity. Source: Twelve Data. Data as of June 30, 2026.

Important Disclosure: ParaFi signals are for informational purposes only and should not be considered or interpreted as financial, legal, tax, or investment advice. The information above should not be construed as a recommendation to buy or sell any specific security.