Key Points
- Zach Pandl, Grayscale’s research director, recommends Strategy liquidate a minimum of $3 billion worth of Bitcoin to satisfy cash requirements for two years
- STRC, Strategy’s preferred stock, declined to $71.25 on Friday, representing a discount of nearly 29% from its $100 par value
- With 847,363 BTC in holdings, Strategy maintains approximately 14 months of dividend reserves
- According to CryptoQuant, Strategy could alternatively increase its 11.5% dividend yield
- Skeptics such as Peter Schiff caution that substantial Bitcoin liquidation might destabilize the cryptocurrency market
Zach Pandl, who leads research at Grayscale, has publicly advocated for Strategy to liquidate no less than $3 billion of its Bitcoin reserves. According to Pandl, this strategic move would satisfy virtually all cash commitments for the upcoming two-year period and potentially rebuild shareholder trust.
Grayscale Research Head: Strategy Selling Over $3B in BTC Could Help Restore Market Confidence
Grayscale Research Head Zach Pandl said Strategy raising the STRC dividend by 50 basis points next week would add about $100 million in dividend obligations over the next two years and… pic.twitter.com/oB1EdoYjCs
— Wu Blockchain (@WuBlockchain) June 28, 2026
Taking to X on Saturday, Pandl presented two potential scenarios for Strategy as the week commenced.
His anticipated scenario involves a 50-basis-point bump to the dividend rate for STRC, the company’s preferred stock instrument. This adjustment would introduce approximately $100 million in additional yearly commitments across two years. According to Pandl, such a measure “likely fails to bolster market sentiment.”
His recommended course of action involves direct liquidation of Bitcoin assets.
Tightening Cash Reserves at Strategy
As the world’s largest publicly traded corporate Bitcoin accumulator, Strategy maintains 847,363 BTC in its treasury.
However, the company’s cash position faces mounting challenges. According to blockchain data provider CryptoQuant, Strategy’s reserves have contracted by 38% through 2026.
SEC filings via Form 8-K revealed Strategy increased its dollar reserves by $300 million, reaching $1.4 billion total. This now provides approximately 14 months of dividend protection — a dramatic decline from the seven-year buffer previously maintained.
The company faces annual preferred dividend commitments totaling roughly $1.2 billion, predominantly attributed to STRC.
Sharp Declines in STRC and MSTR Share Prices
STRC is structured to maintain trading levels close to its $100 par value. Last Friday witnessed a drop to $71.25, representing a 28.75% markdown. Strategy’s common equity shares concluded that session at $82.31, reflecting a nearly 27% weekly decline.
On June 26 specifically, Strategy’s common shares retreated 3.45% while STRC decreased 1.48% to settle at $74.57.
Market pressure intensified following reports that Strategy divested 32 Bitcoin during May 2026. This marked a departure from Executive Chairman Michael Saylor’s historically rigid position against liquidating corporate Bitcoin reserves.
Previous SEC documentation indicated Strategy might contemplate Bitcoin sales if its modified net asset value falls beneath 1.22x. That indicator currently stands at approximately 0.999.
At present market valuations, Strategy carries an unrealized deficit of roughly $13 billion on its Bitcoin portfolio, based on Saylor Tracker data.
Alternative Strategies Under Consideration
CryptoQuant maintains that Strategy faces no requirement to liquidate Bitcoin holdings. The analytics firm suggests the company could instead elevate its existing 11.5% dividend yield to provide price support for STRC.
Bitcoin proponent Samson Mow highlighted an embedded safeguard within STRC’s design. When shares trade beneath the $100 reference threshold, Strategy halts new issuance. This supply restriction, coupled with enhanced implied yield, could entice fresh investors and drive prices toward par value.
Detractor Peter Schiff cautioned that liquidating significant Bitcoin quantities could undermine the broader cryptocurrency market. “Simply ceasing Bitcoin purchases by Strategy would be sufficient to devastate the market,” he posted on X.
On Monday, Strategy announced intentions to continue replenishing cash reserves to maintain the credit strength of its preferred stock instruments.
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