A new class of securities on Wall Street has grown from an experiment to a multibillion-dollar market in less than two years, a June 2026 research report from BitcoinTreasuries.net He says the expansion has just begun.
The report, produced in partnership with DeFi protocol Apyx, tracks the rise Preferred stock Issued by public companies and backed by their Bitcoin holdings. These stocks now carry a combined market value of about $13 billion. This figure represents approximately 1% of the $1.3 trillion global preferred market, a share that the report’s authors expect to reach 3 to 5% by 2030 and up to 10%, or $130 billion, beyond that horizon.
The tool is at the heart of the financing conundrum facing companies that hold bitcoin as a treasury asset. Firms like Strategy, led by Michael Saylor, want long-term capital to buy more Bitcoin without diluting common shareholders or taking on debt that must be repaid by a specific date. Bitcoin price fluctuations make this balance difficult.
Bitcoin trading close $124,720 in October 2025, then fell to less than $60,000 by mid-June 2026, a decline of nearly 47% in eight months.
Preferred stocks provide a path around the problem. When a company issues it, the number of its common shares does not rise, so current owners avoid dilution. The shares are classified as equity rather than debt, meaning there is no maturity date and no forced repayment. In return, stockholders receive dividends that precede common stock.
For income investors discounting Bitcoin’s upside, the structure turns the token’s volatility into a yield product.
Preferred stocks drive Bitcoin expansion
These returns dwarf what fixed income markets pay. The five major preferred securities backed by bitcoin in the United States carry actual yields between 10.8% and 15.2%, versus the 3 to 4% offered on high-yield savings accounts.
Strategy lineup the accounts For most of the market: STRF, STRC, STRK, and STRD together have a market cap of close to $12.5 billion. Strive, an asset manager turned Bitcoin treasury company, has issued a fifth security, sataWith a market value of about $330 million.
The central claim of the report is that demand outstrips supply. Fixed-income institutions, such as mutual funds, banks, pensions and insurance companies, hold $10.9 trillion in US Treasury bonds. A shift of 10 to 20 basis points from this pool would generate $10.9 billion to $21.8 billion in demand, enough to validate the market’s near-term outlook on its own.
However, the supply is limited by the amount of Bitcoin available as collateral. Of the 20 million bitcoins in circulation, holdings in exchanges, spot ETFs and mining companies are excluded as client assets or operating reserves.
This leaves 1.26 million bitcoins sitting in corporate vaults, worth about $83 billion. The strategy alone controls about 845,000 of them, or 67%.
Side coverage is the feature that the report relies on to prove safety. Bitcoin-backed preferreds maintain coverage ratios of 3.8 to 4.5 times, meaning issuers hold $3.80 to $4.50 of Bitcoin for every $1 of preferred stock.
By comparison, the average mortgage at large banks in the third quarter of 2025 rose by about 76 cents for every dollar of home value. “The security of these instruments is much higher than 95% of bonds on the market, because they are actually backed by capital, not future cash flows,” Jeff Walton, chief risk officer at Strive, said in the report.
Not every company qualifies for the release. Walton outlined the requirements: a clean balance sheet free of priority secured debt, size to support an issuance of $100 million or more, and a team proficient in tax treatment, contract design and dividend policy.
He said that pledged Bitcoin is ahead of preferred stocks and will prevent most trades. Strive itself used SATA’s $225 million offering in January to pay off debt inherited from its acquisition of Semler Scientific, a move that left all of its bitcoin unencumbered.
The risks are structural and not hidden. The strategy’s common stock, MSTR, acts as a volatility amplifier, and has fallen more than Bitcoin over the past year. “When the price of bitcoin goes down, the strategy’s prices will go down even more,” said Tony Lau, investment partner at Primitive Ventures, who described a potential cascade in the stock.
Three of the four strategies prefer trading at discounts up to their notional value of $100. The dividend itself depends on the company’s ability to continue raising capital against a rise in the price of Bitcoin, although both Strategy and Strive have disclosed sufficient cash reserves to cover at least twelve months of payments.
Chief Strategy Officer Fung Lee He said Investors in February that the company’s balance sheet would remain flat unless Bitcoin drops to $8,000 and stays there for five or six years.
For now, the report positions preferred stocks as a tool in the “0-to-1 moment” — a market where appetite exceeds what issuers can produce, and where the gap is tilted in favor of companies willing to build the product.
