Fidelity Reports Surge in Bitcoin Demand Driven by Preferred Stocks

Fidelity Digital Assets has released a report indicating that perpetual preferred stocks issued by Bitcoin treasury companies have financed the acquisition of 135,979 Bitcoin (BTC) over the past year, as of October 5, 2026. This amount represents over 0.5% of Bitcoin's total supply, highlighting a significant new avenue for investment in the cryptocurrency market.

Perpetual preferred stocks function similarly to bonds that do not mature, allowing companies to raise funds from income-focused investors while avoiding traditional debt. In 2026, the issuance of these stocks accelerated, with more than $7 billion raised between March and May alone, resulting in the purchase of over 95,000 BTC during that period. April marked the peak, with nearly 30,000 BTC acquired in just one week.

Fidelity emphasizes that these financial instruments could serve as a bridge to the larger fixed-income market, estimated at around $150 trillion. The firm believes that perpetual preferred equity can attract fixed-income investors by offering yields that may exceed those of traditional cash equivalents. However, the model carries risks, as ongoing dividend obligations remain even if Bitcoin's price declines, raising questions about the sustainability of these investments in a volatile market.

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Source: KLEA News