Strategy's BTC Buys Could Slow as $28B STRC Cap Looms
Strategy (NASDAQ: MSTR), the largest corporate holder of Bitcoin, may soon face a slowdown in its aggressive BTC acquisition strategy. According to new research from Delphi Digital, the company's preferred stock issuance vehicle, STRC, is nearing its authorized issuance cap of $28.3 billion—a critical constraint for its primary funding engine.
STRC, introduced in July 2025, allows Strategy to raise capital for Bitcoin purchases while paying variable monthly dividends, currently at 11.5%. However, Delphi notes that once the issuance ceiling is hit, BTC accumulation could "slow or stop" unless the cap is expanded or the company pivots to alternative funding mechanisms.
Key Financial Dynamics
STRC has been a cornerstone of Strategy's Bitcoin-buying strategy, most recently contributing $100,000 to a $43 million BTC acquisition on May 11, 2026. However, the bulk of that purchase—$42.9 million—was financed through sales of the company’s Class A common stock (MSTR). This suggests Strategy is already diversifying its capital-raising efforts as the STRC limit comes into view.
Michael Saylor, Strategy’s Executive Chairman, has leaned heavily on STRC to build the company’s Bitcoin reserves, which now total 818,869 BTC at an average cost of $75,540 per coin. With Bitcoin trading at $80,090 as of May 14, 2026, Strategy is sitting on a slim unrealized gain of about $3.73 billion.
Delphi researchers highlighted the company’s market net asset value (mNAV)—the ratio of enterprise value to the market value of its Bitcoin holdings—as a crucial indicator of its funding flexibility. Strategy’s mNAV currently stands at 1.25x, down from 2.11x a year ago. A reading above 1 supports additional stock issuance, while a drop below 1 could limit the company’s ability to raise capital for more BTC buys.
Alternative Funding Paths
If STRC reaches its cap, Strategy has several options. Delphi suggests the company could lean more on its At-The-Market (ATM) equity offering program, which allows direct sales of common or preferred stock into the open market at prevailing prices. This mechanism was used to launch a $44 billion ATM program in March 2026, providing flexibility for capital raises without significant market disruption.
Saylor has also signaled a potential shift in strategy, stating during the company’s Q1 2026 earnings call that selling small portions of BTC could fund dividends tied to STRC shares. While this marks a departure from his "never sell" philosophy, Saylor emphasized that acquisitions would still far outpace any sales.
Implications for Bitcoin
As Strategy’s BTC accumulation engine approaches a potential bottleneck, market participants will be watching closely. The company’s aggressive buying has historically supported Bitcoin prices, with its purchases often coinciding with market rallies. Any slowdown could dampen bullish sentiment, especially given the outsized influence of Strategy’s moves on institutional confidence in Bitcoin.
Looking ahead, Strategy faces a significant cash obligation in September 2027, which Delphi estimates can be covered by its $2.25 billion in reserves. However, near-term funding constraints will test whether Saylor’s Bitcoin-first strategy can maintain its momentum or require recalibration.
For traders, the key metrics to monitor are STRC issuance levels, mNAV trends, and any announcements regarding alternative funding methods. As Strategy pivots, its decisions could ripple through the broader crypto market.