K33 Research argues Strategy’s financing could cost it bitcoin

K33 Research argues — Analysts at K33 Research have argued that Strategy, a publicly traded bitcoin holder, may accumulate less of the cryptocurrency over time due to its use of preferred stock for financing.

The firm contends that issuing common stock instead would be a more accretive long-term strategy for increasing its bitcoin holdings. According to K33’s analysis, the structure of the preferred share offerings dilutes the potential bitcoin-per-share growth for common shareholders.

The argument centers on the cost of capital and the long-term financial engineering of bitcoin-focused corporations. K33 suggests that a shift in financing approach could better align corporate growth with shareholder value in bitcoin terms.

The research highlights an ongoing debate within the digital asset investment community about optimal capital allocation for public companies whose primary treasury asset is bitcoin.