Rising financing costs weaken MicroStrategy's Bitcoin purchasing power, ETF becomes the new market main force

Source: TokenPost Original Title: Strategy’s funding burden weakens Bitcoin($BTC) purchasing capacity… Shift towards ETFs Original Link:

MicroStrategy’s Bitcoin Purchase Strategy Enters a New Phase

As a long-term holder of Bitcoin and a provider of continuous buying pressure in the market, MicroStrategy faces a new situation in 2026. The financing environment has worsened, and the pace of purchases and market influence are declining.

By the end of December 2025, MicroStrategy raised $195.9 million by selling 1,255,911 common shares, but only purchased 3 Bitcoins, showing a clearly conservative stance. After entering 2026, the purchase pace accelerated—between January 1 and 4, it raised $116.3 million by selling 735,000 shares, and bought 1,283 Bitcoins at an average price of $90,391 each, increasing total holdings to 673,783 BTC.

Rising Financing Costs Limit Purchasing Power

MicroStrategy’s declining purchasing power is closely related to changes in mNAV (the ratio of market price to Bitcoin net asset value). From 2024 to early 2025, MicroStrategy financed at low cost by issuing low-interest convertible bonds (interest rates from 0.625% to 2.25%, even some at 0%)—this was feasible when MSTR stock price was above Bitcoin value (mNAV > 1).

However, from mid-2025 onwards, mNAV fell below 1, reversing the situation—this means the stock price is below the value of the Bitcoin assets held, making convertible bonds and other equity-linked products less attractive.

MicroStrategy then turned to issuing preferred shares for financing, but at very high costs. The effective financing cost of preferred shares reached 10%-12.5%. The dividend yield on STRC preferred shares rose from 9% in August 2025 to 11% in January 2026, reflecting the ongoing increase in financing costs.

Continued Financing Expansion but Market Influence Limited

Despite the challenging financing environment, MicroStrategy still issued common shares to the market via ATM (at-the-market) offerings to buy Bitcoin. This short-term strategy dilutes existing shareholders but demonstrates MicroStrategy’s commitment to maintaining liquidity and expanding holdings.

However, as long as mNAV remains below 1 in the long term, this strategy entails significant financing burdens and dilution costs. As a result, MicroStrategy can no longer play the role of a “price setter” as before, and its purchasing activity becomes fragmented and limited.

New Market Landscape in 2026

In 2025, the main buyers of Bitcoin were MicroStrategy and spot ETFs, both with comparable purchase scales, significantly impacting the market.

But in 2026, the situation will change. As the mNAV premium disappears and financing costs rise, MicroStrategy’s purchasing power will weaken. ETF fund inflows and market risk appetite will become the main drivers of price formation.

Keyword explanations

mNAV: The ratio of MSTR stock price to its Bitcoin asset value in market trading. A value >1 indicates a premium, ≤1 indicates a discount.

Convertible bonds: Bonds that can be converted into stock under certain conditions, more advantageous when stock prices are at a premium.

ATM method: A financing method where stocks are issued immediately at market price.