Bitcoin Treasury Firms Pitch Yield to Bond Investors Despite Drawdown

Attendees at the Bitcoin 2026 Conference lined the aisles on the second day as speakers shifted focus from monetary revolution to returns, liquidity and capital structure. The irony was not lost on the room: companies promoting Bitcoin-linked income products were simultaneously navigating one of the asset’s sharper drawdowns.

Treasury model gains traction

Michael Saylor, executive chair of Strategy (MSTR), told the conference that demand for the company’s STRC preferred stock has been driven largely by retail investors, who account for about 80% of holdings. Corporate treasuries, institutional credit investors and index-linked funds have also begun participating. Strategy’s internal estimates, shared on stage, point to more than 120,000 retail accounts holding the product directly, with roughly 3mn households gaining indirect exposure through brokerage platforms, funds and other channels.

Saylor positioned the securities as tools for generating higher returns on cash reserves. The STRC preferred shares target annualized dividends of about 11.5% – well above current US Treasury yields of around 4.3% or money-market fund rates – by using investor capital to acquire and hold Bitcoin. Corporate treasury departments are evaluating these Bitcoin-linked income products as alternatives to traditional cash management options.

The preferred stock structure allows companies to raise capital with a senior claim on assets and dividends, while leveraging Bitcoin holdings for potential upside. However, it carries risks: dividends depend on the company’s ability to service debt in volatile markets, and prolonged price declines could pressure sustainability and liquidation preferences.

Downturn tests conviction

The approach, pioneered by Strategy in 2020, now faces its first major test. Bitcoin traded near $76,000 on 28 Apr, nearly 40% below its October 2025 highs. Public treasury companies collectively hold significant Bitcoin, but the cohort has seen mixed performance year-to-date, with newer entrants under particular pressure.

Nashville-based Nakamoto Inc. sold 284 Bitcoin – about 5% of its holdings – for $20mn in March 2026 to fund corporate expenses. The sale occurred at an average price of roughly $70,422 per BTC, well below the company’s weighted average cost basis of $118,171.

Genius Group, an AI-focused education company that branded itself "Bitcoin-first," liquidated its entire treasury of about 84 BTC in the first quarter to repay $8.5mn in debt. It said it intends to rebuild its position when conditions improve.

London-listed Satsuma Technology, an AI-focused software development company, faces pressure from shareholders, including Pantera Capital, to sell its remaining roughly $50mn in Bitcoin holdings and consider returning capital or winding down. Satsuma shares have fallen more than 33% this year.

Early movers outperform

Strategy’s first-mover advantage and the liquidity of its listed instruments have helped it weather the environment better. Its common stock (MSTR) is up 5.4% in 2026 so far, outperforming Bitcoin’s roughly 12% decline over the same period.

On stage, speakers maintained strong conviction despite the challenges. David Bailey, CEO of Nakamoto, said: "It’s hard to run a public company. It’s easy to have conviction when the price is soaring. Real conviction comes from seeing Bitcoin recover after every single bear market."

Saylor described Strategy’s model as a "crypto reactor" that converts Bitcoin commodity into credit-like instruments. Executives framed the approach as an early-stage shift in corporate finance, with Bitcoin treasuries beginning to encroach on traditional cash and fixed-income allocations.

Regulatory, market questions loom

The hybrid securities have so far operated in a relatively light regulatory environment, but scaling could invite closer scrutiny from securities regulators over classification, leverage disclosure and investor protections.

As the model matures, it could influence corporate bond markets by offering higher-yielding alternatives tied to Bitcoin volatility. At the same time, repackaging the original "outside traditional finance" asset through debt and yield structures raises questions about its long-term monetary narrative.

For now, Las Vegas speakers positioned the treasury strategy as still in its infancy. "This is us eating the financial system," Bailey said. "We’re at the very, very, very early stages."