According to ChainCatcher, Grayscale’s head of research Zach Pandl said that Strategy’s disclosure on June 1 of selling 32 bitcoins, though a small amount, has already incited a fresh wave of volatility in the bitcoin market. The move has prompted market participants to reassess the company’s holding strategy.
Pandl highlighted that Strategy’s variable rate preferred stock (STRC) is currently trading below its $100 target. This situation may compel the company to increase dividends to maintain investor appeal, thereby adding pressure on future cash flows. Such pressure could translate into more frequent BTC liquidations, generating additional sell-side pressure on the market.
Under the present stock price levels of both STRC and MSTR, Strategy’s ability to further accumulate bitcoin is notably limited. Analysts suggest that unless there is a significant shift in share prices or market structure, the firm is unlikely to resume large-scale purchases in the near term, which could constrain long-term capital inflows into the bitcoin market.