Delphi Digital: MicroStrategy's Bitcoin Accumulation Enters High Cost Phase

BlockBeats News, May 13th, Delphi Digital stated in a post that the Strategy has historically raised capital through issuing shares at a premium and cheap convertible bonds. Now, this window has largely closed.

The issuance of common stock is constrained by the market-adjusted net asset value (mNAV) after the recent correction, and the issuance of new convertible bonds has been suspended, with STRC becoming the primary financing channel. The 11.5% yield represents the cost at a lower level of the capital structure. The payment order of STRC is behind convertible bonds and preferred stocks, so holders are compensated for bearing the impairment risk avoided by the debt layer.

The Strategy is paying this spread to continue accumulating Bitcoin at the current levels, while buying time to repay the large debt due in 2028.