Perpetual preferred stocks surpass convertible bonds, Bitcoin companies' financing structures face a test

【CryptoWorld】A leading Bitcoin asset company’s perpetual preferred stock has surpassed the $8.36 billion mark, overtaking its $8.21 billion convertible bond issuance. This shift in financing structure aims to avoid the risks associated with bond maturity, but it also brings a long-term “burden”—an annual dividend commitment of $876 million.

Sounds like a stable choice? But analysts disagree. They point out a concerning hidden risk: if Bitcoin prices continue to decline, the premium space for the company’s stock will be squeezed, and it may ultimately have to issue new shares to maintain dividends, leading to dilution of equity. Worse still, if Bitcoin sales become unavoidable, the company will face a dilemma—either sell Bitcoin to pay dividends (contradicting the original purpose of asset storage) or withstand dividend pressures, triggering a chain reaction. Once the market detects this risk, it could trigger a deeper vicious cycle.