New Opportunities for Income Investors

Perpetual preferred stocks are opening avenues for income investors looking to engage with bitcoin, a sector traditionally dominated by exchange-traded funds (ETFs). Mark Palmer, a senior equity research analyst at StoneX, notes that these new investment products have successfully attracted a demographic that ETFs have largely overlooked.

ETFs vs. Perpetual Preferreds

Ryan Rasmussen, head of research at Bitwise, highlights that while perpetual preferreds may draw in buyers who typically avoid ETFs, he expects demand for ETFs to prevail in the long run. “Over the long run, I expect ETFs to be a larger source of demand for bitcoin, with perpetual preferred offerings acting as a second tailwind addressing a different type of investor (yield investors),” said Rasmussen.

Financial Performance and Risk Factors

According to James Butterfill, CoinShares’ head of research, the STRC product has proven financially impactful, raising $7.5 billion from 2026 through late July, while paying a variable dividend that currently hovers around 12%. Such fundraising carries significant ongoing dividend commitments for the investors involved.

Furthermore, Alex Blume, founder and CEO of institutional bitcoin asset manager Two Prime, points out that products like STRC and Strive’s SATA are influenced not just by bitcoin price movements but also by factors such as management effectiveness, issuer obligations, and prevailing capital markets. For instance, in late June, STRC’s price demonstrated volatility, briefly dropping to the $70 range. Blume noted that increasing issuance might complicate the balance between enhancing bitcoin per common share and fulfilling dollar-denominated dividend payouts without resorting to bitcoin sales. Currently, the price for Strategy preferred stock stands around $99.40.