The marginal bitcoin buyer now pays a dividend
Slowcycles ·
Perpetual preferred stock has financed 135,979 bitcoin since 2025, according to Fidelity, which is more than 0.5% of the supply that will ever exist. Strategy's STRC alone raised $7.5 billion in 2026 through late July and pays a variable dividend around 12%.
This is a different buyer from the ETF one. An ETF buys when its clients do; a preferred buyer has to keep selling new preferreds to keep buying, and the demand for those is reflexive. The closer they trade to par, the easier the next sale. STRC was briefly in the $70s in late June and around $99.40 in the 24 October reporting.
This cycle the marginal buyer is paid in dividends it has to keep funding, and that kind of demand holds only while the funding window stays open.
This is a different buyer from the ETF one. An ETF buys when its clients do; a preferred buyer has to keep selling new preferreds to keep buying, and the demand for those is reflexive. The closer they trade to par, the easier the next sale. STRC was briefly in the $70s in late June and around $99.40 in the 24 October reporting.
This cycle the marginal buyer is paid in dividends it has to keep funding, and that kind of demand holds only while the funding window stays open.