Perpetual Preferred Stock: The Newest Demand Catalyst in Bitcoin

Introduction

In early 2026, perpetual preferred stocks were thrust into the forefront of the bitcoin ecosystem. The concept is straightforward: Issue a perpetual preferred stock with an attractive yield to raise capital, with the sole objective of accumulating bitcoin. For issuers, the strategy only works if the appreciation of the underlying asset outpaces the cost of yield. Companies implementing this strategy are operating under the assumption that it will.  

This article examines the rise of perpetual preferred stock within the bitcoin space, the potential impact it could have on demand, and how it compares as a demand driver to bitcoin exchange-traded products (ETPs), which launched in January 2024.

The Rise of Bitcoin-Focused Perpetual Preferred Stock

Historically, perpetual preferred stocks have been largely held by institutional investors. These instruments have typically paid a monthly dividend, have no maturity date, and are viewed as a conventional income generator. With the advent of bitcoin-focused perpetual preferred stock, dividend payments have become more frequent, ranging from bi-monthly to daily. 

The chart “Bitcoin Accumulated via Perpetual Preferred Stock” illustrates the demand for bitcoin through this funding mechanism. Companies that offer a bitcoin-focused perpetual preferred stock aim for the preferred to trade very close to par value. A company may issue more shares if the price rises above par and then use the proceeds to accumulate bitcoin. This novel concept was first launched by Strategy in July 2025 and has since expanded to include additional issuers.¹  

In March 2026, the issuance of bitcoin-focused perpetual preferred stock enabled the purchase of over 22,000 bitcoin.^2,3,4 In April, proceeds from these issuances were used to purchase over 48,000 bitcoin, including nearly 30,000 bitcoin in a single week.^5,6,7 By May, these products facilitated the accumulation of nearly 25,000 additional bitcoin, bringing the total to over 95,000 bitcoin in three months.^8,9,10,11

Altogether, more than $7 billion was raised to buy bitcoin over this three-month period. As of October 5, 2026, these products have contributed to the accumulation of 135,979 bitcoin, representing more than 0.5% of the total bitcoin supply in just over a year.

ETPs vs. Perpetual Preferred Stocks: Two Public Sources of Demand

By comparison, spot bitcoin ETPs accumulated 888,185 bitcoin in the year following their January 2024 launch, as shown on the chart “Bitcoin Accumulated in First Year”.  

The first-year results for perpetual preferred stocks have not matched those of spot bitcoin ETPs, which are designed for investors seeking direct exposure to bitcoin. However, the success of the preferred products suggests meaningful demand for a high-yield, fixed-income investment with a bitcoin focus. 

Against a backdrop of persistent inflation concerns, it is unsurprising that investors are gravitating toward a yield-generating product designed explicitly to accumulate what many view as the world’s scarcest money.

The Growing Scarcity of Bitcoin Amidst Endless Fiat Currency

The growing scarcity of bitcoin makes the digital asset a particularly compelling complement to perpetual preferred stocks. In October 2025, bitcoin reached a new all-time high above $125,000 as just 5% of the total bitcoin supply remained to be mined. Born out of the 2008 global financial crisis, bitcoin has since come to be regarded as a long-term hedge against monetary debasement and inflation. 

A clear, data-driven example of this can be seen in the growth of U.S. debt and money supply relative to bitcoin’s market cap.  The chart “Growth of M2, U.S. Debt, and Bitcoin” demonstrates how bitcoin’s supply growth has steadily slowed while the money supply and U.S. debt have continued to expand since bitcoin’s inception.  

This trend highlights one of the crucial properties of money over the long term: scarcity. Bitcoin’s supply and demand dynamics make it a unique and potentially compelling option alongside the issuance of perpetual preferred stock. 

In an era marked by concerns about currency debasement and inflation, bitcoin’s fixed issuance schedule and decentralized network offer an alternative to traditional monetary systems. Raising fiat currency through the issuance of common and perpetual preferred equity can reduce the need to incur debt to accumulate bitcoin. Converting those dollars into bitcoin may be a prudent strategy for investors seeking to preserve purchasing power in an era of fiat currency debasement. 

The Potential Market for Bitcoin-Focused Perpetual Preferred Stock

Bitcoin-focused perpetual preferred stocks are uniquely positioned to offer higher yields than many cash and cash-equivalent investments, given that bitcoin’s historical compound annual growth rate has far exceeded prevailing yields on traditional fixed-income instruments.

If bitcoin’s historical rate of appreciation persists, these vehicles may be an attractive option for segments of the fixed income market. The global fixed income market is valued at approximately $150 trillion. To date, these new perpetual preferred stocks represent about $12 billion in market share and have facilitated the accumulation of over 135,000 bitcoin.^12,13 

To put this fixed income example in relative terms, consider the Great Pyramid of Giza, which contains roughly 2.3 million stone blocks. If we equate this to a total addressable global fixed income market of $150 trillion, then $12 billion would be equivalent to just 153 stone blocks “laid” via bitcoin-focused perpetual preferred stocks. Continuing the analogy, the entire market cap of bitcoin would equate to roughly 25,000 stone blocks.   

This illustrates the vast, largely untapped potential for further investment in bitcoin-adjacent products within the fixed income space. However, these perpetual preferred stocks are not simply the high-yield equivalent of money market funds. They carry an additional layer of risk. A comprehensive assessment of these risks is beyond the scope of this article, but it is important to note that the success of these instruments is tied closely to the long-term performance of bitcoin as well as the companies issuing them.

Conclusion

Nearly 96% of all bitcoin has already been issued and the remaining supply issuance is set to halve once again in less than two years. For investors, the takeaway is clear: Even modest adoption within the vast fixed income market could materially reshape bitcoin’s supply-demand dynamics, positioning these instruments as a potentially powerful new driver of long-term value. 

The bitcoin market now has two new investment demand channels that have formed in less than three years: ETPs and perpetual preferred stocks. Significantly, both were born out of the traditional investment industry, and both are transparent, giving the Fidelity Digital Assets Research Team visibility into two major demand sources. 

We will continue to monitor whether these products provide consistent demand for bitcoin and if additional products emerge as adoption continues. 

Get in touch with our team to explore how evolving supply and demand dynamics may impact your investment strategy.