Grayscale’s Pandl urges Strategy to sell $3B of Bitcoin

Zach Pandl, head of research at Grayscale, urged Strategy to sell at least $3 billion in Bitcoin to cover most of the company’s cash obligations over the next two years and to restore market confidence, writing on X on Saturday.

Pandl argued a $3 billion sale would provide enough cash to meet near-term liabilities tied to Strategy’s preferred securities and warned the firm may instead raise the dividend rate on its flagship preferred stock, STRC.

He forecast a 50-basis-point rise in STRC’s dividend rate and estimated that would add roughly $100 million in annual obligations over two years. He wrote the change would “probably does not help market confidence.” Strategy faces about $1.2 billion in annual preferred dividend payments, driven mainly by STRC.

STRC is marketed as a “digital credit” preferred intended to trade near its $100 par value, but it traded well below par in recent sessions. On Friday STRC fell to as low as $71.25, a roughly 28.75% discount to par. Strategy’s common stock, MSTR, closed Friday at $82.31, down about 27% for the week.

Strategy holds about 847,363 Bitcoin on its balance sheet. An 8-K filing shows the company bought 520 BTC for about $34.9 million between June 15 and June 21 and increased its U.S. dollar reserve by $300 million to $1.4 billion.

An analysis of company filings indicates the cash reserve is down roughly 38% in 2026 and currently covers about 14 months of dividend obligations, a sharp drop from an earlier seven-year cushion. Strategy said it will continue replenishing cash reserves to support the credit quality of its digital credit securities.

Some market participants say Strategy could defend STRC’s price without selling Bitcoin by adjusting the preferred’s yield; STRC’s current yield is around 11.5%.

Bitcoin advocate Samson Mow noted STRC has a built-in corrective mechanism: once the stock trades below its $100 reference price, the company pauses new ATM issuance, cutting supply. He added a lower price increases the yield for new buyers and could attract demand that pulls the price back toward par.

Pandl wrote he hopes Strategy opts to sell Bitcoin to shore up cash but also signaled he expects management to consider raising the STRC dividend, a choice he warned could add to near-term obligations.