BlockBeats News, May 13th, Delphi Digital issued a statement indicating that Strategy has been obtaining funds over the years through issuing shares at a premium and cheap convertible bonds. However, this window has now been mostly closed.

The issuance of common stock is constrained by the market-adjusted net asset value (mNAV) post the recent market correction, new convertible bond issuance has been paused, and STRC has become the primary financing channel. The 11.5% yield is the cost of being at a lower level in the capital structure. The payment order of STRC is after convertible bonds and preferred stock, compensating holders for taking on the impairment risk that the debt layer avoids.

Strategy is bearing this spread in order to continue accumulating Bitcoin in the present while buying time to repay a large debt due in 2028.