Strategy's Funding Model Shifts, Impacting Bitcoin Purchases

Strategy, a prominent holder of bitcoin, has recently undergone a change in its financing structure. Unlike previous years, when it raised capital via convertible bonds at low interest rates, Strategy is now issuing high-cost preferred stock and dilutive common stock.

This shift in funding will have a significant impact on the company's ability to purchase large amounts of Bitcoin. As a result, its buying activity will transition from continuous to intermittent, with ETF flows and overall market sentiment becoming more influential drivers of price.