Bitcoin Treasury Firms Hit 1.3M BTC as Preferred Funding Strains

A record number of coins and a weaker way to pay for more

Publicly listed companies that hold bitcoin as a treasury asset now own about 1.3 million BTC between them. That is roughly 6.2% of the 21 million coins that will ever exist, spread across 180 firms counted by the tracker SatsIntel.5 Bitfinex released the figure in an Oct. 30 analysis, and the same report raised a warning. The preferred stock that these companies increasingly sell to fund purchases could lose favor with investors. If buyers start demanding bigger discounts, the fundraising cycle could stall, and companies might have to sell bitcoin to pay their dividends.71

Most outlets reported the headline figures the same way. They agree on the 1.3 million total, the 6.2% share of supply, and Strategy's dominant position at 848,517 BTC, about two-thirds of all corporate holdings.68 They differ in tone. Some coverage treated the milestone as proof of growing institutional confidence.18 Another piece said corporate hoarding removes liquidity and props up prices.16 The filings point the other way. Accumulation is slowing, it is concentrated in one company, and it depends more and more on financing tools that are under pressure. The Bitfinex warning matters more than the 1.3 million figure.

One buyer accounts for most of the growth

CryptoQuant data released on Oct. 28 shows how lopsided the sector has become. Listed companies added 304,337 BTC between Aug. 14, 2025, and October 2026, a 31% increase. Strategy accounted for about 216,000 of those coins, or 71% of the growth.1715 Outside Strategy, monthly purchases by other public companies fell about 91%, from 55,804 BTC in July 2025 to 5,090 BTC in September 2026.17 Of 205 companies with a history of holding bitcoin, only 50 bought any in the past six months. Eleven new corporate holders appeared in all of 2026 through the reporting period, compared with 23 in September 2025 alone.17

Bitwise figures show the same pattern. Strategy added a net 1,666 BTC in the third quarter, down from 83,901 BTC in the second. Other public companies added 5,617 BTC, down from 45,725.10 Some treasury firms are also selling. CryptoQuant found that 44 of 100 newly formed treasury companies had sold part of their holdings.15 One outlet called this mature, active treasury management.15 It is just as easy to read it as companies raising cash because issuing new shares no longer works.

The trackers do not agree on exact totals. One tracker covering 173 companies put holdings at about 1.28 million BTC on Oct. 29. Another, covering 181 firms, counted about 1.24 million. The gaps come from different coverage and different disclosure dates.17 So "1.3 million" is best taken as a round number.

How the preferred-stock model works

The main financing tool for the sector is now perpetual preferred stock with high yields. Investors seeking income receive large dividends. The company raises dollars for bitcoin without issuing common shares that would reduce each existing shareholder's claim on the coins.5 The model works only if those preferred shares trade near their stated value. Bitfinex argues that steeper discounts would break the cycle.5

Strategy's STRC is the main example. It closed at $99.34 on Oct. 29, just below its $100 stated value. It had fallen to $71.25 in June, traded below par from May, and recovered into the $90s from August.7 On Oct. 28, shareholders approved daily dividend record dates. These start for STRC on Nov. 1, with STRF, STRK and STRD following on Jan. 1, 2027.5 Chief executive Phong Le said STRC used to drop about 49 basis points around its monthly ex-dividend date. That shrank to about 36 basis points after payouts moved to twice a month, and daily payments could narrow it further.11 The change affects only the timing of payments, not the amount.7

Strive, based in Dallas, is the second example Bitfinex examined. It sold 7 million SATS shares at $90 each in October, raising about $630 million. Each share has a $100 face value and pays a fixed $15 a year.5 Strive bought 6,182 BTC between Oct. 17 and Oct. 23 at an average of $82,732, bringing its holdings to 43,000. Its cash rose to $504.4 million.11 It also set aside a dividend reserve of about $157.5 million, enough for roughly 18 months of payments.5 Bitfinex added that a discounted launch price does not by itself signal distress, since STRC also debuted at $90.11

The fair reading is that Strive's raise shows the model still works for a smaller company that can grow its holdings quickly. Adding 1,000 BTC raises Strive's stack by about 2.3%, compared with about 0.12% for Strategy.5 It does not show the model can scale. A 15% coupon sold below par is costly money, and those payments are owed whatever bitcoin's price does.5

Strategy is buying back its own preferred stock instead of bitcoin

Strategy's recent filings show where its money is going. In the week to Oct. 11, it bought 250 BTC for $21.5 million, its smallest weekly purchase of 2026. In the same week it spent $192.4 million buying back STRC, about nine times as much.22 Between Oct. 19 and Oct. 25 it bought no bitcoin at all. It spent $204.9 million repurchasing 2,068,459 STRC shares, paid for from cash, and sold no shares through its at-the-market (ATM) program.2428 Strategy's dollar reserve, earmarked for dividends and interest, stood at $4.83 billion, with $242.4 million in general cash.24 The company has said it buys STRC below par partly to reduce future dividend obligations.32

Strategy has also already sold bitcoin to meet these obligations. Its Oct. 29 results showed about $431.8 million of bitcoin sold so far this year to support preferred dividends and STRC repurchases.32 The scenario Bitfinex describes, selling coins to cover dividends, has already happened on a small scale.

The main constraint is mNAV, the ratio of a company's market value to the value of its bitcoin. Estimates vary. One analysis put Strategy's gross figure at 0.95 on Oct. 23.27 The company's own method gave 1.16, while some outside trackers cited about 0.91.24 The mnav.com tracker showed 1.19 on Oct. 30.21 BitMEX Research estimated the ratio at about 1.1, down from close to 3 in 2024.22 Wherever the exact figure sits, the premium that let Strategy issue common shares and add bitcoin per share has mostly gone. Insolvency is not the risk. One calculation puts the price at which senior claims would no longer be covered near $23,900.27 What Strategy is losing is the ability to keep growing.

The $80,000 line

Price adds pressure. Glassnode data put treasury companies' average cost near $80,000 per coin.20 Bitcoin traded around $77,000 on Oct. 30, according to market data shown with the coverage.7 Below that level, the group's average holding is underwater. Firms with debt or preferred dividends are most exposed to forced selling.20 Strategy's own average cost is about $75,446, which gives it more room than smaller holders such as Metaplanet, which was already reported to be showing losses.2420 One analysis noted that ETF inflows, not treasury companies, have recently done most of the buying above $80,000.20

Index providers are adding to the pressure

The biggest outside risk comes from index providers, not government regulators. In mid-October, MSCI finalized a framework that makes "non-operating companies" ineligible for its global indexes. A company that falls below a 50% operating-asset threshold and fails four of five financial tests can be removed. Existing members are removed only if they fail in two consecutive annual periods.3432 MSCI's list of potential removals includes Strategy, Metaplanet, Yellow Cake, Skel Fjarfestingafelag and Upexi. The final decision is due Nov. 11, and changes take effect after the close on Nov. 30.32

JPMorgan has estimated that removal could trigger about $2.8 billion of passive selling, and up to $8.8 billion if other index providers follow.33 Strategy disagrees. It says index-linked funds hold about 13 million of its shares, or 3.1% of its basic share count, and that its bitcoin business counts as an operating segment under U.S. GAAP.32 Removal would not force Strategy to sell bitcoin. It would weaken demand for the shares the company relies on to raise money.32

What to watch

Analysts expect any recovery to be selective. Bitfinex's Jag Kooner said share issuance could restart if premiums return, but a repeat of last year's broad fundraising wave is unlikely, and capital will favor large, liquid companies with a track record.109

The picture is a sector that has reached record holdings just as its funding is weakening. Three things will show whether the preferred-stock model lasts: the Nov. 11 MSCI decision, whether STRC stays near par once daily dividends begin, and whether bitcoin moves back above the $80,000 cost line. If those go the wrong way, the risk Bitfinex flagged becomes the main story.