Grayscale Expert Recommends Strategy Liquidate $3B in Bitcoin Holdings to Stabilize Investor Trust

TLDR

Table of Contents

Zach Pandl, Grayscale’s research director, recommends Strategy liquidate no less than $3 billion in Bitcoin holdings to meet two years of financial commitments
STRC, Strategy’s preferred stock, declined to $71.25 on Friday, representing a discount of nearly 29% from its $100 par value
With 847,363 BTC in reserves, Strategy faces approximately 14 months of remaining dividend coverage
CryptoQuant suggests alternative strategies, including increasing the current 11.5% dividend yield
Skeptics like Peter Schiff caution that substantial Bitcoin liquidation could destabilize the entire cryptocurrency market

Zach Pandl, who leads research at Grayscale, has issued a public recommendation for Strategy to liquidate a minimum of $3 billion worth of Bitcoin. According to Pandl, this strategic move would address virtually all of the company’s financial commitments over the coming two-year period while simultaneously helping to rebuild market confidence among investors.

Grayscale Research Head: Strategy Selling Over $3B in BTC Could Help Restore Market Confidence
Grayscale Research Head Zach Pandl said Strategy raising the STRC dividend by 50 basis points next week would add about $100 million in dividend obligations over the next two years and… pic.twitter.com/oB1EdoYjCs
— Wu Blockchain (@WuBlockchain) June 28, 2026

Pandl presented his perspective on X this past Saturday, detailing two potential scenarios Strategy might pursue in the week ahead.

His anticipated scenario involves a 50-basis-point elevation in the dividend rate for STRC, the company’s preferred stock. This adjustment would generate approximately $100 million in additional annual commitments across two years. However, Pandl expressed skepticism that such an approach “probably does not help market confidence.”

His recommended approach centers on an outright Bitcoin liquidation.

Strategy Confronts Shrinking Cash Reserves

Strategy maintains the distinction of being the world’s largest corporate Bitcoin holder among publicly traded companies, with holdings totaling 847,363 BTC.

However, despite this substantial cryptocurrency position, the company’s cash reserves face mounting challenges. According to blockchain analytics provider CryptoQuant, Strategy’s reserve has contracted by 38% throughout 2026.

An SEC 8-K filing revealed that Strategy increased its US dollar reserves by $300 million, bringing the total to $1.4 billion. This adjustment extends the company’s dividend coverage to approximately 14 months—a dramatic reduction from the seven-year buffer it previously maintained.

The company faces an annual preferred dividend commitment of roughly $1.2 billion, predominantly attributable to STRC.

Significant Declines Hit STRC and MSTR

STRC’s structure targets trading near its $100 par value. Last Friday witnessed a decline to $71.25, representing a 28.75% discount. Meanwhile, Strategy’s common stock concluded trading at $82.31 that same day, marking a nearly 27% weekly decline.

On June 26 specifically, Strategy’s common shares fell 3.45% while STRC decreased 1.48% to settle at $74.57.

This downward pressure emerged following reports that Strategy liquidated 32 Bitcoin in May 2026. This transaction represented a departure from Executive Chairman Michael Saylor’s longstanding commitment to never divest company holdings.

A previous SEC disclosure indicated Strategy might contemplate Bitcoin sales if its modified net asset value falls beneath 1.22x. Current measurements place this metric at approximately 0.999.

Based on current market valuations, Strategy carries an unrealized loss of roughly $13 billion on its Bitcoin portfolio, as tracked by the Saylor Tracker.

Alternative Strategies Under Consideration

CryptoQuant maintains that Strategy faces no requirement to liquidate Bitcoin holdings. The analytics firm contends the company could instead elevate its existing 11.5% dividend yield to bolster STRC’s market price.

Bitcoin proponent Samson Mow highlighted an inherent feature within STRC’s design. When trading falls below the $100 reference price, Strategy halts new share issuance. This supply constraint, coupled with an enhanced implied yield, could potentially draw fresh investment and elevate the price back toward par value.

Skeptic Peter Schiff issued a warning that liquidating substantial Bitcoin quantities could negatively impact the broader Bitcoin marketplace. “Even if Strategy merely stops buying Bitcoin, that change alone would crush the market,” he stated on X.

Strategy announced Monday its intention to continue replenishing cash reserves to maintain the credit strength of its preferred stock offerings.