Saylor’s STRC Bitcoin machine is turning shareholders into its cash backstop – causing a dilution trade-off

Strategy (formerly MicroStrategy) repurchased $1.5B of convertible notes in May, lowering debt but materially draining cash that investors regarded as the backstop for preferred-stock dividends. The resulting cash/dilution trade-off increases the likelihood Strategy will rely on equity issuance or other funding that dilutes shareholders to continue Bitcoin accumulation, which could constrain its role as a steady marginal buyer of BTC and add tail-risk to market demand.