Delphi Digital Highlights Strategy's Shift in Financing Amid Market Changes

Delphi Digital reports that Strategy has historically raised funds through premium stock issuances and low-cost convertible bonds. According to ChainCatcher, this financing avenue has largely closed. Common stock issuance is now constrained by market-adjusted net asset value (mNAV), and new convertible bond issuance has been halted. STRC has emerged as the primary financing channel, offering an 11.5% yield, which reflects the cost at a lower tier of the capital structure. STRC holders are compensated for the impairment risk avoided by debt layers, as their repayment priority is below convertible bonds and preferred stock. Strategy is paying this spread to continue accumulating Bitcoin while managing the repayment of significant debt due in 2028.