Strategy nears STRC limit as Bitcoin buying may slow
Strategy, the largest corporate holder of Bitcoin, is approaching a critical ceiling in its aggressive BTC acquisition strategy. The constraint could test how far the company can keep turning capital-market access into new Bitcoin purchases.
Highlights
- Strategy’s STRC issuance limit stands at approximately $28.3 billion.
- Recent 535 BTC purchase ($43 million) was funded mainly through MSTR share sales.
- Cash reserves total $2.25 billion, with next major maturity in September 2027.
Financing mechanics and recent activity
According to a new report from Delphi Digital, the company’s authorized limit for issuing perpetual Series A Variable Rate Preferred Stock (STRC) stands at approximately $28.3 billion. Reaching this cap without an increase could significantly reduce the pace of future Bitcoin purchases.
On Monday, Strategy acquired 535 Bitcoin for $43 million, with the majority of the funds coming from the sale of Class A common shares (MSTR) rather than STRC. The company’s current market net asset value (mNAV) multiple sits at 1.25x.
Analysts note that Strategy tends to rely heavily on STRC when the mNAV premium is low, using it as the primary capital-raising tool for Bitcoin buys. When the premium rises, the company shifts toward issuing common stock. STRC offers investors an attractive yield of around 11.5% through monthly dividends, appealing to income-focused investors.
Financial position and outlook
Strategy currently holds $2.25 billion in cash reserves. Its next major debt maturity is not due until September 2027. While current liquidity provides a buffer for upcoming obligations, analysts warn that debt maturities will increase substantially in 2028.
STRC allows Strategy to avoid adding new fixed debt maturities, but it creates ongoing dividend obligations that require continuous capital inflows. Delphi Digital highlights that the instrument has been effective so far but is now nearing its structural limit.
The next test for BTC accumulation
The key indicator for Strategy now, according to Delphi, is market net asset value, or mNAV. It shows the premium at which the company trades compared with the value of its crypto assets.
Strategy mNAV is about 1.25x, down from 2.11x a year ago. When the premium is low, the company tends to rely more on STRC; when mNAV expands, it can more actively sell MSTR to fund BTC purchases.
In an earlier report, we noted that Strategy dominates March Bitcoin buying.
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