DelphiDigital: Micro-strategy Bitcoin accumulation has entered a more costly stage

DelphiDigital posted that Strategy has been raising capital for years by issuing stocks and cheap convertible bonds at a premium. Today, this window is basically closed. The issuance of common shares is subject to market-adjusted net asset value (mNAV), the issuance of new convertible bonds has been suspended, and STRC has become the main financing channel. The 11.5% yield is the cost at the lower level of the capital structure. STRC is in the order of repayment after convertible bonds and preferred shares, so holders are compensated for taking on the impairment risk avoided by the debt layer. Strategy is paying this spread to continue accumulating bitcoin for the time being while buying time for large debt repayments due in 2028.