Fidelity says preferred stock funded 135,979 BTC in purchases, while warning the model depends on Bitcoin gains outpacing dividend costs.
- Fidelity reports that preferred stock issuance has funded the purchase of 135,979 Bitcoin, representing over 0.5% of the total supply.
- This funding model relies on Bitcoin's appreciation outperforming the cost of dividend payments to preferred shareholders.
- Preferred shareholders face unique risks including issuer, liquidity, interest-rate, and inflation risks, distinct from direct Bitcoin holders.
Topics: Asset types, Institutional adoption, Yield performance, Equity, Asset manager initiatives, Private credit high yield
Tags: #fidelity #bitcoin #preferredstock #treasurycompanies #fundingmodel #assetappreciation #dividendcosts #preferredshareholders #liquidityrisk #inflationrisk
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