Strategy's STRC issuance approaching $28.3 billion cap may slow Bitcoin accumulation

Odaily reported that according to a report from Delphi Digital, the authorized issuance cap for Strategy's variable rate Series A perpetual preferred stock (STRC) is approximately $28.3 billion. If this cap is reached without being extended, Strategy's Bitcoin accumulation pace may slow down. On Monday, Strategy purchased 535 Bitcoins for $43 million, with most of the funds for this acquisition raised through the sale of its Class A common stock (MSTR).

Currently, Strategy's market net asset value (mNAV) stands at 1.25x. Researchers noted that when the mNAV is low, Strategy uses STRC as its primary accumulation tool; if the mNAV expands, it may acquire Bitcoin through MSTR sales. Strategy holds $2.25 billion in cash reserves, with its next major cash obligation due in September 2027. (Cointelegraph)