Fidelity says preferred stock has funded 135,979 Bitcoin in purchases

Fidelity Digital Assets says perpetual preferred stock has financed purchases of 135,979 Bitcoin, making the funding model used by treasury companies another source of demand for the cryptocurrency. Preferred-stock issuance financed 135,979 BTC in purchases through Oct. 5, Fidelity said. The funding model depends on Bitcoin’s gains exceeding the cost of dividend payments. Preferred shareholders face issuer, liquidity and interest-rate risks alongside Bitcoin exposure. An Oct. 20 report by research analyst Zack Wainwright said the purchases represented more than 0.5% of Bitcoin’s maximum supply as of Oct. 5. The report names Strategy and draws on filings from Strive. Companies issue dividend-paying preferred shares and use the proceeds to buy Bitcoin.

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