Bitcoin $10B corporate credit market expands after selloff

A June drop in Bitcoin prices triggered margin calls that pushed leading preferred shares tied to corporate Bitcoin holdings well below their $100 stated value. Despite the declines, dividend payments continued, secondary-market trading rose sharply and issuers kept buying Bitcoin.

The preferred securities, including Strategy’s STRC and Strive’s SATA, carry $100 stated values and pay regular dividends. Investors had used those shares to raise yield, often borrowing to amplify returns. When Bitcoin fell below $60,000 in June, some leveraged positions received margin calls. Forced sales from indebted holders accelerated price declines beginning June 18; STRC fell to about $75 and SATA to roughly $88 at their lows.

Trading activity spiked during the distress. Combined June volume for STRC and SATA exceeded $10 billion, with STRC accounting for about $8.7 billion and SATA generating nearly $1.5 billion. By the time of publication, STRC had recovered to about $87 and SATA to around $97.

The heavy secondary-market turnover did not produce significant new capital through at-the-market issuances. Still, Strategy and Strive added to corporate Bitcoin reserves in June. Strategy acquired a net 3,625 BTC and Strive added 3,364 BTC, spending roughly $200 million each and making them the largest corporate buyers that month.

Issuers moved to strengthen preferred structures. Strategy raised STRC’s annual dividend to 12% and unveiled a capital framework that included a $2.55 billion cash reserve, authority to repurchase preferred shares and the ability to sell Bitcoin under defined conditions. The company stated the reserve covers about 17 months of expected preferred dividends and interest payments.

Market participants in other regions are studying similar products. On July 10, Tokyo-listed Metaplanet announced a joint study with Siiibo Securities, the yen stablecoin issuer JPYC and security-token platform Progmat to explore tokenized credit instruments backed by Bitcoin. The proposal combines stablecoins for payments, security tokens for ownership records and Bitcoin as the asset supporting the securities. No issuance timetable or final legal structure has been set, and the partners have not decided whether investors would hold direct legal claims to the designated Bitcoin.

A survey by BitcoinTreasuries.net found 78% of respondents expect the digital credit market to grow through 2027, while 22% projected outstanding supply could exceed $50 billion. The survey showed 87% view digital credit favorably, 72% had invested in the sector and 76% expect similarly sharp price declines could recur. Some industry proponents note that Bitcoin’s public price stream allows investors to monitor market risk in real time.

June’s events tested how preferred-share financing performs under stress. Market participants and potential issuers are now assessing whether investors will provide fresh capital after seeing leading products trade below par.