Key Takeaways
- Grayscale’s research director Zach Pandl recommends Strategy liquidate a minimum of $3 billion in Bitcoin holdings to secure cash for two years of financial commitments
- STRC, Strategy’s preferred shares, dropped to $71.25 on Friday, representing a discount of nearly 29% from its $100 reference price
- Despite controlling 847,363 BTC, Strategy’s dividend reserves now provide coverage for approximately 14 months only
- Blockchain analytics platform CryptoQuant suggests alternative solutions, such as increasing the current 11.5% dividend rate
- Skeptics including Peter Schiff caution that substantial Bitcoin liquidation could destabilize the entire cryptocurrency market
Zach Pandl, Grayscale’s research director, has made a public recommendation urging Strategy to liquidate no less than $3 billion worth of Bitcoin. According to Pandl, this strategic move would secure sufficient funds to meet virtually all corporate financial commitments over the following 24 months while simultaneously rebuilding shareholder trust.
Pandl posted his analysis on X over the weekend, presenting two potential scenarios for Strategy as the week begins.
His anticipated scenario involves a 50-basis-point hike to STRC’s dividend rate, Strategy’s preferred equity instrument. Such an adjustment would create approximately $100 million in additional annual commitments spanning two years. Pandl indicated this approach “likely fails to strengthen market sentiment.”
His recommended alternative is an outright Bitcoin liquidation.
Shrinking Cash Reserves at Strategy
Strategy maintains the world’s largest publicly traded corporate Bitcoin treasury, currently holding 847,363 BTC.
Yet despite this substantial cryptocurrency position, the company’s cash holdings face mounting strain. According to blockchain intelligence provider CryptoQuant, Strategy’s cash reserves have declined 38% during 2026.
Recent SEC Form 8-K disclosures revealed Strategy increased its US dollar reserves by $300 million, bringing the total to $1.4 billion. This capital now provides approximately 14 months of dividend payment capacity—a dramatic reduction from the seven-year buffer previously maintained.
Strategy faces annual preferred dividend requirements totaling roughly $1.2 billion, predominantly attributed to STRC.
Significant Declines in STRC and MSTR Values
STRC is structured to maintain pricing near its $100 reference point. Last Friday witnessed the security plummet to $71.25, representing a 28.75% markdown. Strategy’s common equity closed that trading session at $82.31, marking a nearly 27% weekly decline.
On June 26 specifically, Strategy’s common shares fell 3.45% while STRC decreased 1.48% to settle at $74.57.
The downward momentum stems from reports that Strategy liquidated 32 Bitcoin during May 2026. This transaction marked a departure from Executive Chairman Michael Saylor’s longstanding commitment to never divest company cryptocurrency assets.
Previous SEC documentation indicated Strategy might contemplate Bitcoin sales if its adjusted net asset value falls beneath 1.22x. Current calculations place that indicator at approximately 0.999.
Based on present market valuations, Strategy carries an unrealized deficit of roughly $13 billion on its Bitcoin portfolio, per Saylor Tracker data.
Alternative Strategies Available
CryptoQuant maintains Strategy faces no mandatory requirement to liquidate Bitcoin. The analytics firm contends the corporation could alternatively elevate its existing 11.5% dividend yield to bolster STRC’s market price.
Bitcoin proponent Samson Mow highlighted an embedded feature within STRC’s design. When the security trades beneath its $100 benchmark, Strategy halts additional share creation. This constrained supply, coupled with an enhanced effective yield, may entice fresh investors and drive pricing back toward par value.
Skeptic Peter Schiff cautioned that liquidating substantial Bitcoin quantities could independently harm the broader cryptocurrency market. “Even if Strategy simply ceases Bitcoin acquisitions, that shift alone would devastate the market,” he posted on X.
Strategy announced Monday its intention to continue replenishing cash reserves to maintain the credit strength of its preferred securities.
