135,979 BTC. That is how much Bitcoin has been bought with money raised from Bitcoin-focused perpetual preferred stock as of October 5, 2026, according to a new report from Fidelity Digital Assets. Against Bitcoin’s 21 million fixed supply, that works out to roughly 0.65%, accumulated in just over a year by an instrument most crypto investors had never heard of before July 2025.
The report, written by research analyst Zack Wainwright and published October 20, frames these shares as a new, distinct source of demand alongside spot ETFs. It also spells out the condition the whole model rests on.
How the model works
A perpetual preferred share pays a fixed dividend and never matures. Bitcoin treasury companies issue these shares to yield-seeking investors and use the proceeds for one purpose: buying Bitcoin. Strategy launched the first such product in July 2025, and other issuers such as Strive have followed, per crypto.news.
Fidelity notes that issuers try to keep the preferred trading close to par value. When it trades above par, the company can sell more shares and buy more Bitcoin. Dividends, traditionally monthly for preferreds, now range from bi-monthly to daily on some of these products.
The catch is written plainly in the report: “For issuers, the strategy only works if the appreciation of the underlying asset outpaces the cost of yield.”
The 2026 surge, in numbers
Fidelity’s monthly breakdown shows how quickly this channel scaled:
- March 2026: issuance funded over 22,000 BTC.
- April 2026: over 48,000 BTC, including nearly 30,000 BTC in a single week.
- May 2026: nearly 25,000 BTC more.
That is more than 95,000 BTC in three months, funded by over $7 billion raised. Dividing those two figures gives a rough average cost in the low-to-mid $70,000s per coin, which is our back-of-envelope estimate rather than a Fidelity number. With Bitcoin trading around $83,000 this week, that cohort of buys sits in profit for now.
Fidelity puts the total size of these preferred products at about $12 billion.
Smaller than ETFs, but a different buyer
For scale, US spot Bitcoin ETFs accumulated 888,185 BTC in their first year after launching in January 2024. Preferred stock’s 135,979 BTC is about 15% of that. Fidelity concedes the first-year results “have not matched” ETFs.
The more interesting point is who is buying. ETFs serve investors who want direct price exposure. Preferreds serve income investors who want a fixed yield with Bitcoin in the background. Fidelity sizes the global fixed income market at roughly $150 trillion; $12 billion is under 0.01% of that. If even a sliver of bond money migrates, this channel could matter far more than it does today.
Where it can break
Dividend obligations do not pause when Bitcoin falls. If the price stalls or slides for long enough, issuers must fund payouts from cash, new issuance or, in a worst case, Bitcoin sales. As Crypto Briefing put it, a prolonged downturn will test whether investors keep lining up.
Holders face their own risks. Some preferred terms let issuers suspend or defer payments, and holders rank below bondholders if a company fails. Rising interest rates typically push existing preferred prices lower, and thin liquidity can force sales below face value.
What it means for Indian investors
These preferreds trade on US markets, so Indian investors could only reach them through an overseas brokerage account under the RBI’s Liberalised Remittance Scheme, with its annual remittance limit and tax collected at source on larger transfers. That makes them a niche route, not a substitute for holding Bitcoin.
The bigger takeaway is about price drivers. A meaningful share of 2026’s Bitcoin demand came from US corporate balance sheets funded by fixed-income products, not just retail or ETFs. For anyone in India buying BTC on a local exchange (where gains are taxed at a flat 30% and transfers carry 1% TDS), it is worth tracking whether this issuance keeps pace, because a slowdown would remove a steady buyer. You can follow the live price on our Bitcoin price page.
FAQ
What is a Bitcoin perpetual preferred stock? A dividend-paying share with no maturity date, issued by a company that uses the proceeds to buy Bitcoin.
How much Bitcoin has it funded? 135,979 BTC as of October 5, 2026, per Fidelity Digital Assets, including over 95,000 BTC between March and May 2026.
Is it safer than holding Bitcoin? Not necessarily. It adds issuer, interest-rate and liquidity risk, and the model depends on Bitcoin rising faster than the dividend cost.
This article is for information only and is not financial advice. Do your own research before investing.