Key facts
- Grayscale's head of research, Zach Pandl, proposed Strategy sell at least $3 billion in Bitcoin.
- The proposed sale aims to cover Strategy's cash obligations and restore market confidence.
- Strategy faces significant preferred dividend obligations on its STRC stock, which has traded at a discount.
- Pandl suggested an alternative scenario involving a 50 basis point increase in the STRC dividend, adding to obligations.
- Critics like Peter Schiff warned that selling Bitcoin could negatively impact its price.
- Strategy holds 847,363 BTC, and its mNAV has fallen below a threshold that could trigger Bitcoin sales.
Grayscale's head of research, Zach Pandl, has suggested that Strategy, the world's largest corporate Bitcoin holder, should sell approximately $3 billion in Bitcoin. Pandl believes this move could help cover the company's cash obligations and restore confidence in its capital structure, particularly concerning its Variable Rate Perpetual Stretch Preferred Stocks (STRC). He outlined two scenarios: one where the STRC dividend increases by 50 basis points, adding about $100 million in annual obligations, and a preferred scenario involving the significant Bitcoin sale to cover nearly all cash obligations for the next two years.
These comments come as Strategy's stock (MSTR) and STRC have seen declines. Bitcoin critic Peter Schiff has warned that selling Bitcoin could crash its price, and even a halt in purchases could negatively impact the market. Strategy holds 847,363 BTC, which currently represents a $13 billion unrealized loss. Investor sentiment has also been affected by Strategy's sale of 32 Bitcoin in May 2026, a departure from its previous principle of not selling holdings. Furthermore, a past SEC filing indicated Strategy might sell Bitcoin if its modified net asset value (mNAV) drops below 1.22x, a metric that has now fallen to approximately 0.999.