K33 calculated that STRC's expansion added $725 million to Strategy's annual preferred dividend obligations, equal to roughly 8,740 BTC at $83,000 per bitcoin. According to NS3.AI, K33 estimated that Strategy would have held 843,303 BTC on Oct. 12 if it had largely avoided STRC financing this year, compared with actual holdings of 848,250 BTC.

K33 Head of Research Vetle Lunde said the extra annual dividend costs could erase that 4,947 BTC advantage in about seven months. He added that Strategy's dollar reserve could cover around 42 months of dividends, which lowers the chance of bitcoin sales. Lunde also argued that issuing common stock would be a more efficient way to fund future bitcoin purchases.