TechFlow reports that, according to Delphi Digital’s latest report released on May 12, Strategy’s current BTC accumulation model is highly dependent on financing via STRC preferred shares. As MicroStrategy’s (MSTR) stock premium has narrowed to approximately 1.24x its market net asset value (mNAV), the dilutive impact of common stock issuances on BTC per share has significantly weakened. STRC continues to fund BTC purchases by attracting income-oriented investors—offering an 11.5% annual dividend paid monthly—while avoiding pressure from convertible bond maturities; however, each financing round adds a perpetual dividend obligation.
If BTC remains range-bound, the accumulation of preferred-share obligations will compound while common-stock issuance efficiency declines, substantially increasing structural pressure. Additionally, approximately $8.2 billion in outstanding principal from previously issued convertible bonds enters its repayment phase starting September 2027. Strategy’s current $2.25 billion in reserves can cover roughly $1 billion of the near-term repayments, but no clear solution has yet emerged for the larger debt maturities due in 2028. The report notes that STRC’s current authorized ceiling stands at $28.3 billion; once this cap is reached—and absent an extension—BTC acquisition pace may slow or halt entirely, while dividend obligations continue to accrue.
