Delphi Digital: Strategy Bitcoin Accumulation Enters Higher Cost Phase

Odaily Odaily Planet Daily News Delphi Digital stated that over the past few years, Strategy has primarily relied on issuing stocks at high premiums and low-cost convertible bonds to raise funds for continuously increasing its Bitcoin holdings. However, this financing window is now essentially closed.

Delphi pointed out that common stock financing is being constrained by the market-adjusted net asset value (mNAV), and the issuance of new convertible bonds has also been suspended. As a result, STRC has become its primary current financing channel. Since STRC has a lower repayment priority in the capital structure than convertible bonds and preferred shares, it requires a high yield of approximately 11.5% to compensate investors for the risk of impairment.

Delphi believes that Strategy is currently continuing its Bitcoin accumulation plan by paying higher financing costs, while buying time for the repayment of a large debt due in 2028.