Strategy and Strive Lead High-Yield Securities Boom
Bitcoin-backed preferred shares have grown into a roughly $13 billion market, according to research published in June 2026, offering companies with large bitcoin treasuries a way to generate high-yield income without diluting common shareholders or taking on debt obligations.
The market is dominated by Strategy, the bitcoin treasury company led by Michael Saylor, which controls $12.5 billion in combined market value across four preferred securities: STRF, STRC, STRK, and STRD. Strive, an asset manager turned bitcoin treasury company, has issued $330 million in preferred equity through its SATA offering launched in January 2026.
These instruments offer effective yields of 10.8% to 15.2% on the five main bitcoin-backed preferred securities, compared to 3% to 4% on high-yield savings accounts. The structure works because preferred shares are classified as equity rather than debt, carry no maturity date, and impose no forced repayment obligation. Preferred shareholders receive dividends that rank ahead of common stock dividends.
Strategy currently holds 845,000 bitcoins, representing 67% of all bitcoins held in corporate treasuries. The company’s balance sheet remains solvent as long as bitcoin does not fall to $8,000 and remain there for five to six years, according to Strategy CEO Phong Le, who disclosed balance sheet information to investors in February 2026.
Jeff Walton, chief risk officer at Strive, argued that the collateral backing these securities far exceeds that of traditional bonds. “The security of these instruments is significantly higher than 95% of the bonds in the market, because they’re actually backed by capital, not future cash flows,” Walton said.
Bitcoin-backed preferred shares currently represent 1% of the $1.3 trillion global preferred market. Analysts project the share could grow to 3% to 5% by 2030 and potentially reach 10%, or $130 billion, beyond that year. The growth thesis rests partly on potential demand from fixed-income institutions holding $10.9 trillion in U.S. treasuries. A shift of just 10 to 20 basis points from treasury pools into bitcoin-backed preferred equity could generate $10.9 billion to $21.8 billion in new demand.
The market has weathered significant bitcoin volatility. Bitcoin traded near $124,720 in October 2025 but fell below $60,000 by mid-June 2026, a 47% drawdown over eight months. Three of four Strategy preferred shares trade at discounts to their $100 par value.
Tony Lau, investment partner at Primitive Ventures, cautioned that Strategy’s common stock has fallen more than bitcoin over the past year, acting as a volatility amplifier. “When bitcoin’s price declines, Strategy’s will dip more,” Lau said. However, both Strategy and Strive have disclosed sufficient cash reserves to cover at least twelve months of dividend payments, reducing immediate refinancing risk.
The collateral backing these securities is substantial. Corporate treasury bitcoins total 1.26 million coins, worth $83 billion at current prices. Bitcoin-backed preferred shares maintain collateral coverage ratios of 3.8 to 4.5 times, meaning holders have $3.80 to $4.50 in bitcoin backing for every $1 of preferred equity. By contrast, mortgage collateral coverage averages 76 cents per dollar of home value.
Strive used its January 2026 SATA offering to retire debt from its acquisition of Semler Scientific, leaving all bitcoin unencumbered. The $225 million offering demonstrates that the market supports issuances at scale. Minimum issuance size appears to be $100 million, a threshold that limits participation to companies with substantial bitcoin holdings.
Market Structure and Risks
The preferred share structure avoids common pitfalls of traditional bitcoin financing. Companies do not need to sell bitcoin to raise capital, preserving long-term treasury positions. Preferred shareholders do not gain voting control, protecting existing management. And because no debt maturity exists, companies avoid refinancing risk at inopportune moments.
Encumbered bitcoin, however, would rank ahead of preferred equity and block most issuance deals. Both Strategy and Strive have kept their bitcoin treasuries unencumbered, a structural requirement for maintaining market access.
