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If Active Investing Is the Loser’s Game, What’s the Winner’s Game? - Morningstar

·Jul 24, 2025
Source: Morningstar
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Strategy, Strive face balancing act between bitcoin buying and preferred stock dividends

Oct 24, 2026, 12:00 p.m. EDT3 min readNYSE trading floor (Michael M. Santiago/Getty Images)SummarySince 2025, preferred stocks funded purchases of 135,979 BTC through Oct. 5, Fidelity said. Bitwise expects ETFs to remain the larger demand source, with preferreds attracting yield investors. Dividend obligations and buybacks could constrain further bitcoin purchases. Bitcoin BTC$84,459.46 treasury companies like Strategy (MSTR) and Strive (ASST), whose purchases help maintain demand for the largest cryptocurrency, have a tough balancing act, according to Fidelity Digital Assets and analysts who spoke to CoinDesk. On the one hand, they need cash to fund their purchases. On the other, they need to maintain investor appetite for new sales of the perpetual preferred stock that is their favored fundraising vehicle. As the number of shares in circulation grows, so do the dividend payments. The securities, which sit between debt and common equity in the capital structure with regular payouts and no voting rights, have financed purchases of some 136,000 bitcoin in the 20 months since their introduction, Fidelity research analyst Zack Wainwright wrote in a Tuesday report.

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