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 argued 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 flagship “digital credit” preferred stock 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.
Pandl said he expects Strategy to raise STRC’s dividend rate but hopes the company sells Bitcoin instead. Source: Zach Pandl
Strategy’s cash reserve under pressure
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.
According to Strategy’s latest 8-K filing 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 report that Strategy should pause Bitcoin purchases and focus on replenishing its cash reserve, which is down 38% in 2026.
Related: Bitcoin doesn’t need Ethereum-style yield, says Strategy’s Michael Saylor
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 said on Monday that it plans to continue replenishing its cash reserves to support the credit quality of its “digital credit”…
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