Grayscale Research Head Zach Pandl has said Strategy could restore market confidence by selling more than $3 billion in Bitcoin to cover most of its cash obligations for the next two years, as concerns grow over the company’s balance sheet and preferred stock structure.
Pandl said he expects Strategy to raise the dividend rate on STRC by 50 basis points, but said that move would add about $100 million in obligations over two years and “probably does not help market confidence.” His comments came as STRC traded far below its $100 par value and Bitcoin tested the $59,000 to $60,000 support range.
Grayscale Says BTC Sale Could Restore Confidence
Pandl said a Bitcoin sale of more than $3 billion could help Strategy address nearly all cash obligations over the next two years. In his view, that step may be more effective than raising STRC’s dividend rate while the preferred stock continues trading at a discount.
Strategy has annual preferred dividend obligations of about $1.2 billion, driven mainly by STRC and other preferred instruments. STRC is designed to trade near its $100 reference price, but it fell as low as $71.25 on Friday, putting it nearly 29% below par.
Source: X
The company recently increased its U.S. dollar reserve by $300 million to $1.4 billion, according to its latest 8-K filing. CryptoQuant said that reserve gives Strategy about 14 months of dividend coverage, down from a cushion that once exceeded seven years.
CryptoQuant also said Strategy should pause Bitcoin purchases and rebuild its cash position. The firm said cash reserves have fallen 38% in 2026, making the company’s capital structure a larger focus for investors.
Novogratz Links Bitcoin Selloff to Strategy Concerns
Galaxy Digital CEO Mike Novogratz said Bitcoin’s recent decline reflects “a MicroStrategy-led breakdown in confidence around that complex,” which he said is creating a broader confidence issue for Bitcoin. He also cited hawkish U.S. monetary policy and weaker crypto sentiment as factors behind the selloff.
Novogratz said Strategy’s sale of 32 BTC damaged the belief that Michael Saylor’s company would never sell Bitcoin. The sale took place between May 26 and May 31 at an average price of about $77,135 per BTC, making it small compared with Strategy’s total holdings but notable because it was the company’s first Bitcoin sale since December 2022.
The company holds 847,363 BTC, according to a StrategyTracker chart shared by Saylor. The chart valued the holdings at $50.88 billion as of June 28, 2026, and showed an average purchase price of $75,653 per BTC across 113 purchase events.
Novogratz warned that a break below the $59,000 to $60,000 support zone could send Bitcoin toward $45,000. That view remains a market forecast, not a confirmed outcome, and depends on whether selling pressure continues.
Strategy mNAV Falls Below 1.0
Amid the analyst views, Strategy’s enterprise multiple to net asset value (mNAV) has fallen below 1.0 for the first time. That means the stock market values the company at less than the spot value of the Bitcoin on its balance sheet.
The decline matters because Strategy’s model has relied on issuing equity or preferred shares at favorable levels to raise capital for more Bitcoin. When MSTR and STRC trade weakly, those funding routes become harder to use without hurting existing shareholders or increasing obligations.
MSTR closed Friday at $82.31 after falling 26.86% during the trading week. The stock has also dropped more than 45% year-to-date, while Bitcoin has traded near 20-month lows around $59,000.
Source: X
Strategy still bought 520 BTC for $34.9 million between June 15 and June 21. Saylor yesterday posted, “We’re gonna need more charts,” alongside the StrategyTracker data, signaling continued focus on the company’s Bitcoin treasury strategy.
Analysts Debate Alternatives to Selling BTC
CryptoQuant said Strategy is not required to sell Bitcoin to support STRC, because it can use other tools, such as raising the current 11.5% dividend yield. However, Pandl said a higher dividend may not restore confidence if investors remain focused on cash coverage and preferred obligations.
Bitcoin advocate Samson Mow said STRC has a “self-repairing mechanism" because Strategy stops new at-the-market issuance when the stock trades below $100, while the lower price raises the effective yield for new buyers. Mow said that could attract demand and move STRC closer to par over time.
Ripple CEO Brad Garlinghouse, as we reported, also criticized Strategy’s Bitcoin funding approach last week. He said he remains bullish on Bitcoin but argued that Saylor’s preferred-stock model has hurt the broader crypto market as STRC fell to record lows.
