Odaily Planet Daily report: Cryptocurrency research firm Delphi Digital has released its latest report, "How Far Can Saylor Stretch It," providing a systematic analysis of MicroStrategy's Bitcoin (BTC) funding expansion mechanism, noting that its financing structure is transitioning from "low-cost accumulation" into a phase of "diminishing marginal returns."
The report shows that, within the current asset accumulation system centered on Bitcoin, STRC has become the core financing tool enabling Strategy to continuously purchase BTC. Initially, a positive feedback loop was achieved through significant premium pricing of MSTR shares (mNAV far exceeding BTC net value), allowing “issuance equals increased holdings.” However, as valuations have declined to approximately 1.24x EV based on mNAV, the BTC-per-share accretion effect from common share issuances has now approached breakeven.
Meanwhile, although convertible bond instruments have played a significant role historically, they have accumulated approximately $8.2 billion in principal and face concentrated repayment pressure after September 2027, putting sustained pressure on the long-term viability of the financing structure.
STRC provides Strategy with a continuous source of funding to maintain its BTC purchase pace by offering yield-seeking investors an approximate 11.5% annualized, monthly dividend. However, this mechanism also introduces an ongoing cash flow obligation, meaning each round of financing increases BTC assets while simultaneously accumulating future dividend liabilities.
The report highlights key risk scenarios: if BTC prices remain flat and the MSTR premium fails to recover, the "STRC financing gain from BTC purchases" may be gradually offset by "common share dilution and dividend obligations." Although the company’s approximately $2.25 billion in cash reserves can cover around $1 billion in redemption pressure through 2027, larger-scale debt and dividend structures in 2028 remain unresolved.
Additionally, STRC’s current authorized issuance cap of approximately $28.3 billion has become a critical constraint. Once this cap is reached, the ability to purchase additional BTC may slow, but existing dividend obligations will continue, thereby altering the overall dynamic growth path of BTC per share.