Bitcoin

MSTR

Zach Pandl, head of research at Grayscale, said he hopes Strategy will sell at least $3 billion in Bitcoin to cover most of the company’s cash obligations for the next two years.In a Saturday X post, Pandl <a href="https://x.com/LowBeta/status/2070861238603497612" rel="noopener noreferrer nofollow">argued</a> that the move may restore market confidence in the company's capital structure.Contrary to his hopes, Pandl said he expects a 50-basis-point increase to the dividend rate on Strategy’s preferred stock, STRC, adding roughly $100 million in annual obligations over two years. Pandl added that this scenario “probably does not help market confidence.”Strategy faces an annual preferred dividend obligation of approximately $1.2 billion, driven primarily by STRC.STRC is Strategy's <a href="https://cointelegraph.com/news/saylor-strategys-bitcoin-sale-defend-digital-credit-products" rel="noopener noreferrer nofollow">flagship "digital credit" preferred stock</a> designed to trade near its $100 par value, but has been sliding for weeks. On Friday, it fell to as low as $71.25, a 28.75% discount to par. Strategy’s common stock MSTR fared little better and closed Friday at $82.31, down 26.86% throughout the trading week.<img alt="" height="642" src="https://s3-images.ctmedia.io/media/content/pasted-image-1742.png" width="800">Pandl said he expects Strategy to raise STRC's dividend rate but hopes the company sells Bitcoin instead. Source: Zach Pandl<h2 id="strategy-s-cash-reserve-under-pressure">Strategy's cash reserve under pressure</h2>Strategy is the world’s largest publicly-listed corporate Bitcoin holder, placing its 847,363 BTC stash and financing decisions under the industry’s microscope.&nbsp;According to <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001050446/000119312526276717/mstr-20260504.htm" rel="noopener noreferrer nofollow">Strategy’s latest 8-K filing</a> with the US Securities and Exchange Commission, it acquired 520 Bitcoin for $34.9 million between June 15 and June 21.Blockchain analytics company CryptoQuant argued in a Tuesday <a href="https://cryptoquant.com/insights/research/6a3abc1e7a878621f52753a5-23-June-2026-Overstretched-Strategy-Needs-To-Stop-Buying-Bitcoin-Rebuild-Its-Cas" rel="noopener noreferrer nofollow">report</a> that Strategy should pause Bitcoin purchases and <a href="https://cointelegraph.com/news/strategys-dividend-coverage-falls-14-months-cryptoquant" rel="noopener noreferrer nofollow">focus on replenishing its cash reserve</a>, which is down 38% in 2026.Related: <a href="https://cointelegraph.com/news/strategy-saylor-bitcoin-credit-alternative-crypto-yield" rel="noopener noreferrer nofollow">Bitcoin doesn't need Ethereum-style yield, says Strategy's Michael Saylor</a>The 8-K filing also revealed that Strategy increased its US dollar reserve by $300 million to $1.4 billion. This leaves the company with roughly 14 months of dividend coverage, down sharply from what was once a seven-year cushion.Strategy <a href="https://x.com/Strategy/status/2069028433573593158" rel="noopener noreferrer nofollow">said</a> on Monday that it plans to continue replenishing its cash reserves to support the credit quality of its “digital credit” securities.<h2 id="alternatives-to-a-bitcoin-sale">Alternatives to a Bitcoin sale</h2>CryptoQuant added that the company has no obligation to sell Bitcoin to support STRC’s price, because it can deploy other methods to defend its stock, such as raising the current 11.5% dividend yield.Bitcoin advocate Samson Mow <a href="https://x.com/Excellion/status/2068968925618995587" rel="noopener noreferrer nofollow">argued</a> in a Monday X post that STRC has a built-in "self-repairing mechanism.” Once the stock falls below its $100 reference price, Strategy halts new ATM issuance, cutting off the supply of fresh shares.At the same time, a lower price mechanically boosts the yield for new buyers relative to what they paid, which Mow said should draw in fresh demand and pull the price back toward par over time.<img alt="" height="402" src="https://s3-images.ctmedia.io/media/content/pasted-image-1743.png" width="806">Source: <a href="https://x.com/Excellion/status/2068968931121942879" rel="noopener noreferrer nofollow">Samson Mow</a>Magazine: <a href="https://cointelegraph-magazine.com/ai-is-banking-the-unbanked-in-africa-but-is-it-enough/" rel="noopener noreferrer nofollow">AI is banking the unbanked in Africa… faster than crypto</a>

Grayscale's Pandl says Strategy should sell $3B Bitcoin to restore confidence

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