Grayscale Says Strategy Faces Crucial Test as Capacity for More Bitcoin Buys Shrinks

Strategy, the world’s largest corporate Bitcoin holder, is running into difficulties with its treasury strategy, Cointelegraph reported on June 5.

Jack Pandl, head of research at Grayscale, told Cointelegraph that changes in Strategy’s approach are weighing on market sentiment.

Strategy sold 32 Bitcoin on June 2. The amount was negligible compared with its total holdings of 843,706 Bitcoin, but investors viewed the move negatively. Since the sale, Bitcoin has fallen about 16%, while Strategy shares have dropped 12.8% to $126, their lowest level in two months. Strategy’s preferred stock, STRC, also fell below par to $95.

If Strategy raises its dividend further to attract investors, its cash burden will increase and could force additional Bitcoin sales to cover the cost, Pandl said. That could create a vicious cycle. He added that Strategy’s leveraged business model is under pressure and is increasing volatility across the broader Bitcoin market. At the current share price, the company’s capacity for additional purchases appears limited.

Pandl also said that, over the long term, the Bitcoin ecosystem would be healthier with fewer leveraged digital-asset treasury companies and more Bitcoin held by companies with clearer business structures.