Bitcoin treasury firms face balancing act over preferred stock dividends

Bitcoin treasury companies such as Strategy and Strive are facing a balancing act between purchasing bitcoin and paying dividends on preferred stock, CoinDesk reported on October 24, 2026. The perpetual preferred stock issued by these firms has financed purchases of nearly 136,000 bitcoin. CoinDesk, CoinDesk Markets, and Moomoo all reported that these issues have opened a funding channel expected to complement the broader ETF market. [1][2][3]

According to Fidelity Digital Assets and analysts speaking to CoinDesk, treasury companies require cash to fund bitcoin acquisitions while maintaining investor appetite for preferred equity sales. Preferred stock sits between debt and common equity in corporate capital structures. As the number of preferred shares in circulation grows, total dividend payments rise alongside them. [1]

As FTMQ Crypto reported earlier, Strategy conditionally declared daily cash dividends for its STRC preferred stock for November at an annualized rate of 12 percent, as shares traded below their 100 dollar par value. FTMQ Crypto also reported earlier that Strive announced plans to raise 500 million dollars through five million shares of a new preferred stock class named SATS, carrying a 15 percent fixed dividend yield at par. [8][9]

Bitcoin was created by Satoshi Nakamoto as a digital asset using cryptography, transitioning from a medium of exchange to primarily a store of value. Treasury companies rely on demand for this asset, which traded at 84,459.46 dollars at the time of reporting. [1][4]