Bitcoins $10 billion credit market keeps growing after its first major selloff
Bitcoins more than $10 billion corporate credit market is still attracting new entrants after a June selloff triggered margin calls and drove its leading preferred shares far below par. A new report from BitcoinTreasuries.net described the downturn as the sectors first meaningful stress test, offering an early measure of whether companies can reliably build financing structures around their cryptocurrency reserves. The selloff showed how quickly supposedly stable products can buckle when too much leverage piles in. Yet the market emerged bruised but operational. Dividend payments continued, secondary-market volumes reached record levels, and corporate treasuries kept adding Bitcoin to their balance sheets. That resilience has drawn praise from industry proponents and sustained interest from prospective issuers, which are advancing plans for new yield-paying products across the US, Europe and Asia. Investors are now betting that corporate Bitcoin holdings can support a wider market for preferred shares and similar debt-like products. How leverage turned a stable trade into a cascade Leverage piled into preferred shares that looked stable, then unwound in a rush of liquidations. Strategy, the largest Bitcoin holding company with over 800,000 BTC, and Strive have used preferred shares to raise capital without relying entirely on common-stock sales or conventional debt. The securities typically carry a $100
