Grayscale Research Head Zach Pandl has suggested that Strategy (formerly MicroStrategy) may need to sell at least $3 billion worth of Bitcoin to cover its growing cash obligations and restore investor confidence. In comments posted ahead of next week, Pandl argued that raising the dividend on Strategy’s STRC preferred shares by 50 basis points would only add roughly $100 million in obligations over two years, doing little to improve market sentiment.
Instead, Pandl hopes the company will sell over $3 billion in Bitcoin. The proceeds could cover nearly all cash commitments over the next two years, excluding one convertible debt issue. This comes as Strategy grapples with a significant gap between its operating income and dividend payments. Pandl noted the company faces about $1.5 billion in annual preferred dividend obligations, while its software business generates only $477 million in annual revenue, creating financial pressure.
The discussion follows Strategy’s sale of 32 BTC in late May—the first such sale since 2022—to fund preferred dividend payments. Although small relative to its holdings of over 840,000 BTC, the move drew market attention. Pandl also highlighted that continued weakness in STRC shares, trading below the anticipated $100 value, could increase future financial strain. At the time of the analysis, Bitcoin traded near $60,000, and the broader market had absorbed roughly $3 billion in spot Bitcoin ETF outflows in recent weeks. Pandl urged investors to monitor STRC pricing and Strategy’s filings for any changes to its Bitcoin treasury strategy.
