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

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【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.

BTC-0.46%
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HashRateHustlervip
· 6h ago
This financing structure is really digging its own grave, earning 876 million USD every year. When BTC drops, it just makes you bleed from the mouth.
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GovernancePretendervip
· 7h ago
It's the classic "dilemma" routine again, just a different twist this time.
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InfraVibesvip
· 7h ago
It's the same old trick of issuing more shares to dilute ownership; this time, it's just a different shell.
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LightningWalletvip
· 7h ago
Haha, another big funding pit. The annual dividend pressure of 876 million is just crazy.
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MoonRocketmanvip
· 7h ago
Wait a minute, this layout looks a bit problematic... The $876 million dividend promise is like locking oneself in. Once the stock price enters a downward trajectory, issuing more shares to dilute becomes the only escape plan. By then, this trajectory will be irreversible.
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blockBoyvip
· 7h ago
This financing structure is quite aggressive, with a dividend pressure of $876 million. If BTC drops, it's game over.
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ETHReserveBankvip
· 8h ago
Isn't this just a battle of wits? To avoid bond risks, they've also hidden a dividend bomb. Truly clever.
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BearMarketBarbervip
· 8h ago
This is a deadlock, caught between a rock and a hard place.
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