How to Buy Preferred Stock: A Crypto Investor’s Guide

How to buy preferred stock is a question many crypto-curious investors are asking as digital asset companies increasingly turn to traditional financial instruments. In this guide, you’ll discover what preferred stock means in the context of crypto, how to purchase it, and why it matters for both individual investors and the broader blockchain ecosystem. Whether you’re new to investing or looking to diversify your portfolio, this article will help you navigate the intersection of preferred stock and digital assets, with practical tips and up-to-date industry insights.

Understanding Preferred Stock in the Crypto Industry

Preferred stock is a class of ownership in a corporation that typically offers fixed dividends and priority over common stock in the event of liquidation. In the crypto sector, companies like Strategy Inc. (formerly MicroStrategy) have issued preferred stock to raise capital for large-scale Bitcoin purchases. As of June 2025, Strategy Inc. holds over 640,800 BTC, valued at approximately $74 billion, and funds part of its acquisitions through perpetual preferred stock offerings. How to buy preferred stock in such companies means understanding both the traditional mechanics and the unique risks tied to crypto market volatility.

Key Features of Preferred Stock

• Fixed Dividends: Preferred shareholders often receive set dividend payments, which can be attractive for income-focused investors.
• Priority in Liquidation: In case of company bankruptcy, preferred stockholders are paid before common shareholders.
• Limited Voting Rights: Most preferred shares do not grant voting rights, focusing instead on financial benefits.

In the context of crypto, these features are balanced against the sector’s inherent volatility. For example, Strategy Inc.’s annual preferred stock dividends exceed $640 million, but its ability to pay depends heavily on Bitcoin’s price stability and liquidity.

How to Buy Preferred Stock: Step-by-Step for Crypto Investors

For those interested in how to buy preferred stock in crypto-related companies, the process is similar to purchasing traditional equities but with some important considerations:

1. Research the Issuer

Start by identifying companies that issue preferred stock and have significant crypto exposure. As of June 2025, Strategy Inc. is a leading example, using preferred stock sales to fund Bitcoin acquisitions. Always review the company’s financial health, recent credit ratings (such as the B- rating assigned by S&P Global Ratings), and exposure to digital assets.

2. Choose a Reputable Platform

To buy preferred stock, you’ll need access to a regulated brokerage or trading platform. For seamless access to both traditional and digital asset markets, Bitget offers a secure and user-friendly environment. Bitget users can monitor crypto-related equities and preferred stock offerings, ensuring compliance and transparency.

3. Place Your Order

Once your account is set up, search for the preferred stock ticker (such as STRK, STRF, or STRD for Strategy Inc.). Decide on the number of shares and place a buy order. Be sure to review dividend terms, maturity dates, and any conversion options that may apply.

4. Monitor Performance and Risks

After purchasing, keep track of the company’s performance, dividend payments, and broader crypto market trends. As highlighted by S&P’s recent report, companies with large Bitcoin holdings face liquidity and market risk, which can impact preferred stock value and dividend reliability.

Risks, Rewards, and Recent Market Developments

Buying preferred stock in crypto-focused firms offers unique opportunities and challenges. Here’s what investors should know:

Recent News and Industry Data

• As of June 2025, Strategy Inc. holds over 640,800 BTC, making it the largest corporate Bitcoin holder globally (Source: Bloomberg, S&P Global Ratings).
• S&P assigned Strategy Inc. a B- credit rating, citing high Bitcoin exposure, low liquidity, and concentrated risk.
• Preferred stock dividends for Strategy Inc. now exceed $640 million annually, funded by stock offerings and structured debt sales.
• Market volatility remains high, with Bitcoin’s price swings directly impacting the financial health of companies issuing preferred stock.

Common Misconceptions

• Guaranteed Returns: While preferred stock offers fixed dividends, payments depend on the issuer’s financial stability, which in crypto can be unpredictable.
• Low Risk: Preferred stock is less risky than common stock but still exposed to market downturns, especially when tied to volatile assets like Bitcoin.

Tips for Managing Risk

• Diversify your portfolio to avoid overexposure to any single company or asset class.
• Stay updated on company announcements, credit ratings, and regulatory developments.
• Use secure platforms like Bitget for both research and trading to ensure compliance and asset safety.

Looking Ahead: The Role of Preferred Stock in Crypto Finance

The use of preferred stock by crypto-focused companies marks a significant step in bridging traditional finance and digital assets. As more firms seek credit ratings and issue equity instruments, investors gain new ways to participate in the growth of the blockchain sector. However, the risks remain substantial, especially when dividends and debt obligations depend on the price of highly volatile assets like Bitcoin.

For those eager to explore innovative investment options, understanding how to buy preferred stock is essential. By staying informed and choosing reliable platforms like Bitget, you can access new opportunities while managing risk in this evolving market.

Ready to take the next step? Explore more Bitget features and stay ahead in the world of crypto finance with our expert guides and real-time market insights.