Grayscale’s P&L Strategy Aims to Sell $3B Bitcoin to Rebuild Trust

Grayscale’s research head Zach Pandl says he expects Strategy (the publicly listed corporate Bitcoin holder) will likely have to raise the dividend rate on its flagship “digital credit” preferred stock, STRC, to meet near-term cash obligations. In an X post on Saturday, Pandl also argued that a Bitcoin sale—rather than dividend hikes—could help restore confidence in Strategy’s capital structure.

Still, Pandl’s own base case is unfavorable for investors focused on STRC’s stability: he projected a 50-basis-point increase that would add roughly $100 million in annual obligations over the next two years. The dispute comes as STRC continues trading far below its $100 par reference level, with Strategy’s broader financing choices now under heightened scrutiny.

Key takeaways

• Zach Pandl said he hopes Strategy sells at least $3 billion in Bitcoin to cover most cash obligations over the next two years, but he expects a STRC dividend increase instead.
• Pandl projected a 50-basis-point rise in STRC’s dividend rate, which he said would add about $100 million in annual obligations over two years.
• Strategy’s preferred dividend burden is about $1.2 billion per year, and STRC has recently traded materially below its $100 par value.
• An SEC 8-K filing shows Strategy bought 520 BTC for $34.9 million between June 15 and June 21, while cash reserves increased by $300 million to $1.4 billion.
• CryptoQuant argued Strategy should pause new Bitcoin purchases and focus on rebuilding cash reserves; Samson Mow countered that STRC has a “self-repairing mechanism” once the stock falls.

Dividend pressures collide with STRC’s discount

Pandl, head of research at Grayscale, said Strategy may need to adjust its approach to satisfy cash requirements tied to STRC. In his view, selling Bitcoin could cover most obligations over the next two years and potentially strengthen confidence in the company’s capital structure.

However, Pandl said he expects the opposite outcome. He predicted a 50-basis-point increase to STRC’s dividend rate—an adjustment he estimated would add approximately $100 million in annual obligations over two years. Pandl added that this scenario “probably does not help market confidence,” highlighting a key tension: even if the dividend is supported, the market may still interpret the change as further proof that cash needs are intensifying.

Strategy’s preferred dividend obligation is cited as approximately $1.2 billion annually, driven primarily by STRC. STRC is designed to trade near its $100 par value, but it has been sliding for weeks; on Friday it dropped as low as $71.25, a 28.75% discount to par. Strategy’s common stock, MSTR, also declined over the same period, closing Friday at $82.31, down 26.86% for the trading week.

What the SEC filing and cash math suggest

Strategy remains the largest publicly listed corporate Bitcoin holder, with its Bitcoin and financing activities closely watched by markets. According to Strategy’s latest 8-K filing with the US Securities and Exchange Commission, the company acquired 520 Bitcoin for $34.9 million between June 15 and June 21.

In the same filing, Strategy increased its US dollar reserve by $300 million to $1.4 billion. That figure implies roughly 14 months of dividend coverage, according to the reporting referenced in the article—down sharply from an earlier “seven-year cushion” that investors had previously pointed to as providing insulation.

CryptoQuant argued in a report released this week that Strategy should stop or pause further Bitcoin purchases and instead prioritize rebuilding cash reserves. The report also noted that cash reserves are down 38% in 2026, framing the current posture as increasingly stretched.

Strategy, for its part, said on Monday that it plans to continue replenishing its cash reserves to support the credit quality of its “digital credit” securities, suggesting the company views reserve maintenance as central to its financing strategy.

Calls to sell Bitcoin vs. “self-repairing” stock mechanics

CryptoQuant further suggested that Strategy does not have a direct obligation to sell Bitcoin to defend STRC’s market price. The analytics firm pointed to alternatives such as raising the dividend yield—an approach that could attract incremental demand while spreading the cash burden through a higher return on STRC for new buyers.

Samson Mow, a prominent Bitcoin advocate, took the opposite tack in an X post on Monday, arguing that STRC has a built-in “self-repairing mechanism.” His thesis is tied to Strategy’s financing behavior: once STRC trades below its $100 reference price, Strategy would halt new ATM (at-the-market) issuance, limiting the supply of new shares. In parallel, a lower stock price mechanically increases the yield for buyers relative to what they pay, which Mow said could draw in fresh demand and gradually pull the price back toward par.

Taken together, the debate frames a broader question for STRC investors: is the market discount primarily a cash-coverage issue that must be resolved with reserve rebuilding or asset sales, or is it a pricing mechanism that can correct without selling Bitcoin? The answer matters because dividend adjustments and cash actions affect not only yield, but also how markets interpret the credit durability of Strategy’s digital credit structure.

Why this dispute matters for investors right now

With STRC trading well below par and Strategy’s dividend burden running at roughly $1.2 billion per year, investor attention is shifting from long-term Bitcoin accumulation narratives to short- and medium-term capital structure credibility. Pandl’s comment that a dividend hike may not restore market confidence underscores why the market reaction to cash actions could be as important as the actions themselves.

Meanwhile, the SEC filing confirms Strategy is still buying Bitcoin while cash reserves are being replenished—an approach that may reassure some investors focused on the company’s operating plans, but also fuels skepticism from analysts who argue that cash reserve strength is slipping.

Readers should watch what Strategy does next with its reserve strategy and whether STRC’s discount narrows or widens alongside any dividend policy expectations. The key uncertainty is whether the company will lean more heavily on cash rebuilding and yield adjustments—or accelerate Bitcoin sales—before the next coverage milestone tightens further.