Zach Pandl, head of research at Grayscale Research, said that Strategy’s disclosure of selling 32 bitcoins on June 1 triggered a fresh round of market volatility. Although the amount sold was a mere fraction of the company’s roughly 840,000 BTC holdings, valued at approximately 550 billion dollars, the rare divestment still disrupted market sentiment.
Pandl highlighted that an even more critical issue is the performance of Strategy’s variable rate preferred stock, tickered STRC (Stretch). The security has a designed target price of around 100 dollars and currently offers an 11.5% dividend yield. If the stock price falls below 100 dollars, it signals that investors are demanding a higher return, which could force the company to raise its dividend. Such a move would increase pressure on future cash flows and possibly compel Strategy to sell more bitcoins to raise funds, thereby adding further downward pressure on the BTC price.
Leveraged Reserve Model Under Strain
Strategy’s leveraged bitcoin accumulation model is now facing real challenges. At the current price levels of both STRC and MSTR shares, the company’s ability to continue large-scale bitcoin purchases may be constrained. Over the long term, however, the migration of bitcoin holdings away from highly leveraged digital asset reserve companies and onto more diversified corporate balance sheets could actually strengthen market resilience and improve bitcoin’s long-term value support.
Pandl expects bitcoin to resume its upward trajectory in the coming months, though in the near term it may underperform segments of the crypto market that benefit more directly from regulatory clarity.