Points of Focus

• Delphi warns Strategy’s $28.3B STRC cap could limit Bitcoin buying within about 12 months.
• STRC is fueling Bitcoin accumulation, but dividend obligations are rapidly growing.
• David Seroy warns leveraged STRC looping could trigger destabilizing liquidations.

Strategy’s Bitcoin accumulation engine now runs on STRC, its perpetual preferred share, and a May 11, 2026, Delphi Digital report identifies how far that engine can stretch before the structure turns against it. The ceiling is a $28.3B STRC authorization cap, roughly 12 months away at the current issuance pace.

Our new report "How Far Can Saylor Stretch It" is now live!

STRC has become the center of Strategy’s BTC accumulation model.

The question now is whether each new raise can still add BTC per share after accounting for the common issuance needed to service the preferred stack.… pic.twitter.com/g4l16WTcU7

— Delphi Digital (@Delphi_Digital) May 12, 2026

How STRC became Strategy’s primary funding channel

Strategy’s 818,334 BTC treasury was built across three financing phases: secured debt couldn’t scale, and convertibles expanded the treasury but created a looming maturity wall. The six convertible tranches total $8.2B, share a $200M cross-default trigger, and face a first put date on September 15, 2027. 

STRC, the preferred stock, changed that model. The $100-par perpetual preferred share pays a variable monthly dividend currently set at 11.5%, removing the convertible maturity pressure. 

Meanwhile, MSTR common fell nearly 64% from its late-2024 peak of $473.83 to around $170 in January 2026, compressing its EV-based mNAV to roughly 1.24x. Common-stock issuance becomes accretive only above roughly 1.3x mNAV, implying MSTR would need to trade above approximately $182. 

Strategy’s March 2026 ATM filing authorized $42 billion in issuance capacity split evenly between common shares and STRC, with no new convertibles. STRC quickly became the dominant funding channel, exceeding 70% of weekly ATM proceeds over the two months through mid-April 2026. It directed roughly $14.5B into Bitcoin across the seven months ending April 2026. For context, that volume was 2.2x the BTC mined globally in Q1 2026, while spot Bitcoin ETFs netted just $0.3B.

🔥THIS IS INSANE: STRATEGY'S $42 BILLION BITCOIN SUPER WEAPON🔥

YOU ARE NOT BULLISH ENOUGH ON MSTR.

Strategy just approved $21B of STRC ATM and $21B of MSTR ATM.

Now here’s the part the market is too concussed to understand:

At current balance-sheet settings, every $1 of STRC… pic.twitter.com/MftjMkQPCq

— Adam Livingston (@AdamBLiv) March 23, 2026

The cross-subsidy mechanism and its structural cost

The model works through a cross-subsidy structure. STRC proceeds buy Bitcoin, while MSTR common-stock issuance services the $1.45B annual preferred dividend burden, growing with every new share. 

However, Strategy’s BTC Yield fell from 74.3% in 2024 to 22.8% in 2025 and 9.6% year-to-date through April 2026. Delphi Digital says the structure works only while STRC issuance outpaces the dilution required to service dividends. 

The key threshold is the company’s $28.3 billion STRC authorization cap. Once reached, Strategy could lose its ability to fund Bitcoin purchases through preferred issuance while dividend obligations continue growing. 

The $28.3B cap, the 2027 put, and the 2028 cluster

Strategy holds $2.25 billion in USD reserves, enough to cover the $1.01 billion convertible put due in September 2027, but faces a larger March 2028 cluster of about $3 billion in cash-exercisable puts.

Delphi argues the more immediate risk is the STRC authorization ceiling itself. Without shareholder approval to expand issuance capacity, Bitcoin purchases through preferred shares could slow or stop while dividend obligations continue compounding.

BTC appreciation helps compress the obligation-to-treasury ratio, and STRC’s floating dividend has kept it near $100 par since February 2026. Even so, Delphi estimates Strategy has only about 22 months of runway at current obligation levels before structural pressures intensify. 

The leverage risk STRC bulls haven’t answered

In a May 13, 2026, X post, Alpen Labs’ David Seroy flagged a concern centered on DeFi looping involving tokenized STRC.

🚨Calling all STRC & SATA Experts🚨

There is a low probability, high risk event with STRC and similar instruments I can't get seem to solve.

Can any STRC experts assuage my concerns here? pic.twitter.com/TZR8ZU59Rt

— David Seroy 🏔️ (@david_seroy) May 12, 2026

Seroy described a scenario where users repeatedly borrow against tokenized STRC on lending platforms like Aave or Morpho to buy more STRC and amplify yield. He warned that periodic spikes in DeFi borrowing costs above 20% could flip the trade negative, forcing rapid unwinds and liquidations. That selling pressure could push STRC below par value, triggering further liquidations in a feedback loop. 

Seroy also noted that issuers aren’t legally obligated to redeem perpetual preferred shares at par. MSTR’s Bitcoin-to-preferred ratio sits near 6:1, while Strive’s SATA is closer to 2:1, leaving less room to absorb stress during a sharp Bitcoin drawdown. He said a large-scale unwind could test whether enough liquidity exists to stabilize STRC and restore confidence in the peg.