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MicroStrategy's Bitcoin Buying Machine Hitting a Wall
Description
MicroStrategys Bitcoin buying spree may hit a roadblock as its STRC preferred stock nears a $28 billion issuance cap, according to a Delphi Digital report. The stock, used for stacking sats and raising cash, has a 11.5% monthly dividend but is perpetual with no buyback deadline. As the cap approaches within the next year, MicroStrategy may need to explore other funding options. However, the companys market net asset value is still 1.25 times its Bitcoin holdings, keeping capital doors open. They are considering at-the-market sales of common stock and have reserves to cover their next big cash obligation. If the Bitcoin cycle bottoms out, MicroStrategy may double down on accumulation and give STRC some breathing room.
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