Mars Finance reports that on May 12, crypto research firm Delphi Digital released its latest report, “How Far Can Saylor Stretch It,” which analyzes the sustainability of Strategy’s current Bitcoin accumulation strategy and highlights that its financing structure is nearing critical pressure thresholds. The report notes that Strategy was initially able to continuously acquire BTC because its MSTR stock price remained consistently above the company’s Bitcoin net asset value (mNAV), enabling it to achieve “BTC per share growth” when issuing additional shares to purchase Bitcoin. However, MSTR’s EV-based mNAV has now declined to approximately 1.24x, significantly narrowing the profit margin from further equity issuance and bringing it close to breakeven. Meanwhile, Strategy has historically relied heavily on convertible debt financing. Although low-interest convertibles previously enabled rapid expansion, the company still carries approximately $8.2 billion in principal debt, which will enter a critical repayment phase beginning in September 2027. The report identifies STRC (Strategy Preferred) as the current primary financing mechanism supporting continued Bitcoin purchases. STRC targets income-focused investors with a 11.5% annualized dividend paid monthly; the proceeds are used to acquire more BTC without adding new convertible debt maturities. However, Delphi points out that this model comes at the cost of “continuously growing fixed-income liabilities.” Each STRC financing round immediately increases BTC reserves but simultaneously adds future dividend payment obligations. The report warns that if BTC prices continue rising and MSTR’s premium remains elevated, this structure can persist. But if BTC enters a prolonged sideways trend, dividend liabilities will accumulate while equity financing efficiency continues to decline. Additionally, Strategy currently holds $2.25 billion in cash reserves, sufficient to cover approximately $1 billion in convertible debt put options in 2027—but a larger debt wall in 2028 remains unresolved. Delphi also notes that the current authorized financing ceiling for STRC is $28.3 billion. Once this limit is reached and cannot be expanded, Strategy’s ability to offset dividend dilution through continuous Bitcoin purchases may significantly weaken—or cease entirely.
Delphi Digital Report: Saylor's BTC Buy Strategy Approaches Critical Limits
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Summary
On May 12, 2026, Delphi Digital published a report titled “How Far Can Saylor Stretch It,” evaluating the sustainability of Michael Saylor’s BTC price-buying strategy. The report explains that early BTC purchases were funded by MicroStrategy’s (MSTR) stock price outperforming its bitcoin net asset value (mNAV), enabling BTC growth through equity issuance. MSTR’s enterprise value (EV)-based mNAV is now at 1.24x, reducing the efficiency of equity financing. The company also faces $8.2 billion in convertible bond maturities in 2027. STRC (Strategy Preferred) financing, which offers an 11.5% annual dividend, currently supports BTC purchases but introduces long-term liabilities. If the BTC price remains flat, dividend costs will increase and equity financing will become less viable. MicroStrategy has $2.25 billion in cash to cover the 2027 bond redemptions, but the larger debt obligations in 2028 remain unresolved. Additionally, STRC’s $28.3 billion funding cap could constrain future BTC acquisitions unless raised.
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