According to Delphi Digital’s latest report released today, MicroStrategy’s sustained bitcoin acquisition model is approaching a critical limit as the company’s EV-based mNAV has declined to approximately 1.24x. The research firm analyzed the sustainability of the company’s financing structure, highlighting mounting pressure on future buyback capacity.
Delphi Digital noted that MicroStrategy previously leveraged a premium valuation to issue shares and acquire bitcoin while increasing per-share bitcoin holdings. However, with mNAV now near breakeven levels, equity issuance efficiency has significantly diminished. The company currently relies on its Preferred Strategy (STRC) financing, which offers 11.5% annualized monthly dividends to investors while funding continued bitcoin purchases. Delphi cautioned that this model creates accumulating fixed-income liabilities with each issuance. The firm highlighted that MicroStrategy retains $2.25 billion in cash reserves to cover approximately $1 billion in convertible debt redemptions due in 2027, though larger debt maturities loom in 2028. Additionally, STRC’s authorized financing capacity stands at $28.3 billion; once exhausted, the company’s ability to sustain bitcoin purchases may significantly weaken.
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