Delphi Digital: MicroStrategy Bitcoin Accumulation Has Entered a Higher Costly Stage

Comparing news, Delphi Digital wrote that Strategy has obtained capital by issuing stocks at a premium and cheap convertible bonds over the years. This window is now largely closed. The issuance of common shares is subject to market-adjusted net asset value (mNaV). The issuance of new convertible bonds has been suspended, and STRC has become the most important financing channel. The 11.5% yield is the cost of being in the lower tier of the capital structure. STRC's payment order is after convertible bonds and preferred shares, so holders are compensated for bearing the risk of impairment avoided by the debt layer. Strategy is paying this spread to continue to accumulate Bitcoin now while buying time to repay large debts due 2028.

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