Strategy nears $28B limit on Bitcoin funding tool

Strategy could face a key constraint on its Bitcoin acquisition strategy as its STRC preferred stock programme approaches a $28.3 billion issuance limit, according to research from Delphi Digital.

Delphi said Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, has become one of the company’s primary funding tools for accumulating Bitcoin.

Researchers warned that if the STRC issuance cap is reached without expansion, Strategy’s Bitcoin purchases could “slow or stop while the dividend obligation remains.”

The report came after Strategy disclosed another Bitcoin purchase this week, acquiring 535 BTC for approximately $43 million, with most of the funding sourced through sales of Class A common stock rather than STRC issuance.

STRC was introduced in July 2025 through a $2.5 billion initial public offering and currently pays variable monthly dividends of around 11.5% while operating as a perpetual preferred security.

Delphi researchers said Strategy could continue funding Bitcoin purchases through alternative capital-raising mechanisms, including additional At-The-Market stock sales, depending on the company’s market net asset value ratio.

Strategy’s market net asset value ratio stood at roughly 1.25x on Thursday, indicating the company continues trading at a premium to the value of its Bitcoin holdings despite the declining premium compared with last year.

At the time of reporting, Bitcoin price was $80,968.22.