Zach Pandl, head of research at Grayscale Research, recently commented on Strategy’s latest moves. On June 1, the company disclosed the sale of 32 Bitcoin. Although the amount is minuscule compared to its total holdings of approximately 840,000 BTC (worth about $55 billion), the rare divestment—uncharacteristic of a firm known for continuous accumulation—triggered renewed market reassessment and volatility. Pandl noted that this rare voluntary selling directly impacted investor sentiment.
STRC Preferred Stock Pressure Amplifies Risks of the Leveraged Model
Pandl further warned that the performance of Strategy’s Variable Rate Preferred Stock (STRC, or “Stretch”) deserves closer attention. The product was designed with a target price of around $100 and currently offers an 11.5% dividend yield. If the share price persistently trades below $100, it signals that investors are demanding higher returns, potentially forcing the company to raise dividends. This would strain its already tight cash flows and could necessitate additional Bitcoin sales to raise liquidity, thereby creating further downward pressure on BTC prices.
The company’s highly leveraged Bitcoin reserve model is now being tested. Given the current levels of STRC and MSTR common stock prices, Strategy’s ability to continue large-scale Bitcoin purchases may be significantly constrained. Pandl views this as a structural sign that the market is repricing the approach of accumulating crypto assets purely through high leverage.
Long-Term Shift May Strengthen Market Resilience
Nevertheless, Pandl maintains a constructive long-term outlook for Bitcoin. He believes that the migration of Bitcoin holdings from highly leveraged digital asset reserve companies to more diversified corporate balance sheets will ultimately enhance overall market resilience and improve Bitcoin’s long-term value support. He expects Bitcoin to recover and resume its uptrend over the coming months, though in the near term it may lag behind parts of the crypto sector that benefit more directly from regulatory clarity.