Strategy’s STRC preferred stock, a key source of funds for its bitcoin (BTC) purchases, is nearing its issuance cap of about $28.3 billion. That could slow or halt bitcoin purchases within the next year, an analysis said.

On May 14, blockchain media outlet Cointelegraph reported that crypto research firm Delphi Digital said reaching the STRC limit could emerge as a major constraint within the next year.

STRC is Strategy’s floating-rate Series A perpetual preferred stock. Strategy has used it as one of its main fundraising tools for bitcoin purchases, but Delphi Digital said that if STRC hits the cap, dividend obligations would remain while the pace of bitcoin accumulation could slow or stop.

The analysis came shortly after Strategy resumed bitcoin purchases. The company bought an additional 535 bitcoins on May 12 for $43 million. It marked its first investment since it bought 3,273 bitcoins on April 27 for $255 million. In the filing at the time, proceeds from STRC issuance were about $100,000, while the bulk, $42.9 million, came from the sale of Class A common stock MSTR.

STRC is a product Strategy first introduced after raising $2.5 billion through an initial public offering in July 2025. It is a Nasdaq-listed preferred stock, and its current monthly floating dividend rate is 11.5 percent. As a perpetual security with no maturity, the company has no obligation to redeem it at a specific time.

The analysis cited market net asset value, or mNAV, as a key variable shaping future fundraising conditions. mNAV compares a company’s value with the value of the cryptocurrencies it holds. Seteris, head of research at Delphi Digital, said, "While MSTR's mNAV remains low, Strategy will use STRC as the primary accumulation vehicle." He said, "If mNAV expands again, it makes more sense to use at-the-market sales of MSTR more to buy bitcoin."

Strategy’s dashboard showed mNAV stood at 1.25 times as of May 14. That was down from 2.11 times a year earlier, but it still means the company’s value carries a premium to the value of its bitcoin holdings. Delphi Digital said if mNAV falls below 1, capital-raising capacity is constrained, while if it stays above 1, the company can more easily raise funds for bitcoin purchases through additional stock issuance.

An assessment also said near-term liquidity pressure is not at an urgent level. Atharv D, who wrote the report, said Strategy’s next major cash obligation is in September 2027 and can be sufficiently covered by $2.25 billion in cash and cash equivalents. He said, "The financial condition itself does not read as panic," and explained that the company is using an at-the-market stock issuance programme to cover preferred dividend payments.

Still, whether Strategy continues buying bitcoin may depend less on the STRC cap itself and more on which securities it uses to raise funds. Atharv D said that if mNAV expands again, the effectiveness of common stock issuance improves, allowing funds raised through at-the-market offerings to be redirected back to bitcoin accumulation. That could provide relief to STRC’s share price.

The STRC issuance cap, the mNAV trend and conditions for common stock issuance remain key variables that will determine the pace of Strategy’s bitcoin purchases.

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