Delphi Digital reports that within the next year, Strategy’s preferred stock funding engine may encounter a critical limitation, which might hinder the company’s acquisition of Bitcoin unless it increases its issuance capacity or relies more on common-stock sales.
Although the allowed issue maximum is around $28.3 billion, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, or STRC, according to Delphi, has become one of the company’s primary methods for purchasing Bitcoin.
Potentially Slowing Future Bitcoin Accumulation
Bitcoin accumulation by Strategy may “slow or stop while the dividend obligation remains” if the limit is reached without an extension, according to the post.
The report emphasizes how Strategy’s primary means of generating funds is about to reach a turning point, which may determine how quickly the biggest corporate Bitcoin holder accumulates BTC.
The news follows Strategy’s announcement on Monday that it had spent $43 million to acquire 535 Bitcoins, its first investment since $255 million for 3,273 BTC on April 27. Funding for the transaction, amounting to $42.9 million, came mostly from the sale of Class A common stock (MSTR), with just around $100,000 coming from the issuing of STRC shares, according to the filing.
During its initial public offering (IPO) in July 2025, Strategy raised $2.5 billion in capital, which was the first time the stock was presented. STRC pays variable monthly dividends, which are now 11.5%, and is a preferred security that is listed on the Nasdaq. There is no set date for when the corporation must repurchase STRC shares since STRC is everlasting.
According to researchers at Delphi Digital, Strategy has several methods of collecting funds, the success of which is heavily dependent on its mNAV, which is calculated as the ratio of a company’s enterprise value to the entire value of its cryptocurrency holdings.
According to Strategy’s dashboard, the mNAV was 1.25x on Thursday, down from 2.11x a year earlier. This means that the company is trading at a premium to its Bitcoin holdings.