Fidelity Digital Assets disclosed that perpetual preferred stock issuances have financed the acquisition of 135,979 Bitcoin, marking a new channel of demand for the cryptocurrency. The funding mechanism relies on Bitcoin’s price appreciation outpacing dividend costs, according to a report released on October 5. Analyst Zack Wainwright noted that the purchases accounted for more than 0.5% of Bitcoin’s capped supply as of that date. Companies have issued dividend-paying preferred shares to raise capital for Bitcoin purchases, aligning with an investment thesis that the asset’s scarcity could safeguard value amid declining fiat currency purchasing power. The model’s viability hinges on asset appreciation exceeding yield expenses, as stated in the analysis. Preferred shareholders assume issuer, liquidity and interest-rate risks in addition to Bitcoin exposure, with risk profiles distinct from direct cryptocurrency holders. Fidelity’s investor guidance clarifies that preferred securities blend equity and debt characteristics, featuring variable terms such as perpetual structures without maturity dates or payment deferral options. In the event of default, preferred claims rank above common equity but below senior debt. Inflation risk emerges for preferred investors, as rising prices may erode dividend purchasing power, while elevated market rates typically depress preferred-security valuations and limited market depth can compel sales below face value. The report connects the preferred-stock approach’s success to both Bitcoin’s long-term trajectory and the financial health of issuing entities. No additional agreements or outcomes were indicated in the disclosure.