Fidelity identifies preferred stocks as a demand catalyst for Bitcoin

Wall Street has found a new way to buy Bitcoin, and it looks a lot like something your grandparents owned. According to a report from Fidelity Digital Assets, perpetual preferred stocks issued by Bitcoin treasury companies have financed the purchase of 135,979 BTC in just over a year.

That figure, measured as of October 5, 2026, represents more than 0.5% of Bitcoin’s total supply.

The report, published October 20, 2026, frames these instruments as a real source of demand for Bitcoin. It also positions them as a bridge to the much larger world of fixed-income investors.

The numbers behind the preferred stock push

Think of a perpetual preferred stock as a bond that never matures. Investors hand over cash, the company pays them a steady dividend, and there is no date when the principal comes back.

For Bitcoin treasury companies, that structure is useful. They raise money from income-focused investors and use it to buy more Bitcoin, without issuing new common shares or taking on traditional debt.

The pace picked up sharply in 2026. Between March and May, issuers raised more than $7 billion through these offerings, according to Fidelity.

That capital went toward more than 95,000 BTC during those three months alone.

April was the peak. Fidelity’s data shows nearly 30,000 BTC were purchased in one week that month.

How it stacks up against spot ETPs

Fidelity was careful not to oversell the comparison with spot Bitcoin exchange-traded products. Those funds launched in January 2024 and gathered 888,185 BTC in their first year.

Fidelity’s argument is about who these products reach, not raw volume. The firm sees perpetual preferred equity as a way to tap the broader fixed-income market, which it estimates at around $150 trillion.

Fidelity also asserts that these vehicles can offer yields that surpass many traditional cash equivalents.

Where this trend came from

The model traces back to Strategy, which launched its first perpetual preferred stock product in July 2025. That issuance opened the door for others, including Strive, which Fidelity names alongside Strategy as a pioneer of the structure.

Fidelity has been building this thesis for a while. In commentary from September 2026, the firm highlighted the potential of preferred equity as a form of Bitcoin-backed digital credit, pointing to its appeal for fixed-income investors.

What this means for Bitcoin demand

Money raised through perpetual preferreds goes directly into Bitcoin purchases, so every successful offering translates into buying pressure on the open market.

Still, the model carries risks worth watching. Perpetual preferred stocks come with ongoing dividend obligations, and those payments do not stop just because Bitcoin’s price falls.

Issuers are effectively promising fixed income backed by a volatile asset. If Bitcoin enters a prolonged downturn, the market will test whether that promise holds up and whether investors keep lining up for new issuances.

For investors, the key metrics to track are the volume of new preferred issuance and how much of it converts into Bitcoin purchases. The yields these products offer relative to cash equivalents will also signal whether fixed-income buyers stay interested.