Delphi Digital: Strategy's Bitcoin Accumulation Entering a Higher-Cost Phase

Odaily Odaily reported that 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 secure funds for continuously increasing its Bitcoin holdings. However, this financing window is now essentially closed.

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

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