According to a report by the Delphi Digital analytical center, MicroStrategy's Bitcoin acquisition strategy may face a significant hurdle within the next year. The $28.3 billion limit set for the company's key financing instrument, the Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), is constraining its capabilities. This was reported by Cointelegraph.com reports .
If this limit is not expanded, MicroStrategy will be forced to slow its Bitcoin accumulation pace or rely more heavily on common stock sales. Currently, STRC shares are a vital financial instrument that pays 11.5% variable monthly dividends and is listed on the Nasdaq exchange.
The company recently announced the purchase of 535 Bitcoins for $43 million. The majority of this purchase, $42.9 million, was financed through the sale of MSTR common stock. This demonstrates that the company is utilizing various mechanisms to raise capital.
Delphi Digital researchers are focusing on MicroStrategy's market net asset value (mNAV) metric. If the mNAV ratio is above 1, the company has the opportunity to issue additional shares to continue its Bitcoin purchases. Currently, the company is trading at a premium relative to its Bitcoin assets.
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