Analysis: MicroStrategy's cost to acquire BTC is on the rise

MicroStrategy's cost of acquiring Bitcoin has risen, according to an analysis by Delphi Digital posted on X. The firm explained that while MicroStrategy previously funded its purchases by issuing common stock at high valuations or through low-interest convertible bonds, both avenues have become more challenging. Currently, its main financing tool is the STRC preferred stock, which carries an 11.5% annual interest rate. This high rate reflects the risk to investors, who would be repaid after other creditors if the company were to incur losses. Delphi Digital concluded that MicroStrategy is tolerating these higher costs to continue its BTC accumulation strategy, effectively buying time until a significant redemption event scheduled for 2028.