Saylors Strategy May Slow BTC Buys after $28B STRC Issuance Cap: Delphi
Bitcoin Saylors Strategy May Slow BTC Buys after $28B STRC Issuance Cap: Delphi Strategy‘s preferred stock funding engine could hit a key constraint within the next year, potentially slowing the company’s Bitcoin purchases unless it expands issuance capacity or leans more heavily on common-stock sales, according to Delphi Digital. Delphi said Strategy‘s Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, has become one of the company’s main Bitcoin-buying tools but has an authorized issuance cap of about $28.3 billion. If the cap is reached without an extension, Strategys Bitcoin accumulation could “slow or stop while the dividend obligation remains,” the report said. The report highlights how one of Strategys main capital-raising mechanisms is approaching an inflection point that may dictate the BTC accumulation rate of the largest corporate Bitcoin holder. The report comes after Strategy announced another 535 Bitcoin acquisition for $43 million on Monday, marking its first investment since April 27, when the company bought 3,273 BTC for $255 million. The filing showed that only about $100,000 worth of capital was funded from the issuance of STRC stock, while the majority of the acquisition, or $42.9 million, was funded through the sales of Class A common stock (MSTR). STRC was first introduced by