Delphi Digital: STRC has become a key financing tool for Strategy to continue accumulating BTC

Delphi Digital releases the report “How Far Can Saylor Stretch It” stating that STRC has become the core tool for Strategy’s Bitcoin accumulation model. The report points out that Strategy’s early increased holdings of BTC relied on MSTR’s relatively high premium over its BTC holdings value, making common stock issuance effective in increasing each share’s BTC. However, under the current approximately 1.24x EV-based mNAV, common stock issuance has approached the breakeven point, reducing the efficiency of increasing BTC per share. Convertible bonds once appeared attractive due to low coupon rates and MSTR’s volatility, but also left $8.2 billion in principal and gradually revealed repayment pressures starting from September 2027. Delphi believes that STRC provides a source of funds for Strategy to continue buying BTC by offering investors an 11.5% annualized, monthly-paid dividend, while avoiding additional maturity pressures on new convertible bonds; but the cost is a continuous increase in dividend obligations. If BTC rises and MSTR’s premium remains, this structure can still bear the costs; if BTC stagnates, the obligations of preferred shares will continue to accumulate, and the efficiency of common stock issuance will decline.