Strategy’s BTC Sale Raises Questions Over Leveraged Treasury Model, Grayscale Says

by
Alisa Davidson

Published: June 05, 2026 at 8:21 am Updated: June 05, 2026 at 8:21 am

by Anastasiia O

Edited and fact-checked:
June 05, 2026 at 8:21 am

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Grayscale Head of Research Zach Pandl said that Strategy’s sale of 32 BTC has heightened scrutiny of the company’s leveraged accumulation approach. In a recent report, he argued that weaker prices for the company’s preferred equity could lift dividend commitments and, in turn, increase the likelihood of additional Bitcoin sales.

According to Grayscale, Strategy’s capacity to keep adding to its Bitcoin holdings is becoming more limited, a development that could contribute to greater volatility across the wider market. The firm also suggested that additional buyers may be necessary before Bitcoin can form a more durable floor.

The report said the latest wave of market volatility was driven in part by Strategy’s June 1 disclosure that it had sold 32 Bitcoin. Although the amount was relatively small compared with the company’s balance sheet, which holds about 840,000 BTC, the move marked a notable shift for one of the largest corporate holders of Bitcoin and weighed on investor sentiment.

Preferred Equity Weakness Raises Concerns Over Future Bitcoin Sales

Grayscale placed particular emphasis on the recent weakness in STRC, Strategy’s variable-rate preferred equity instrument. The security is designed to trade near $100 and currently carries an 11.5% dividend. When the share price falls below that level, investors typically demand a higher return. While Strategy could respond by raising the dividend, doing so would increase future cash obligations and could create pressure for more Bitcoin sales, which may add further downside pressure to the market.

Overall, the company said Strategy’s leveraged business model is facing mounting strain, and that this has contributed to elevated volatility in Bitcoin trading. The firm also noted that, at current share prices, Strategy may have limited room to expand its Bitcoin holdings through either STRC or MSTR.

From a longer-term perspective, Grayscale said a broader distribution of Bitcoin ownership across corporate balance sheets could strengthen the market’s resilience. Still, the report added that other buyers would need to step in for Bitcoin to establish a sustainable bottom. Grayscale Research expects Bitcoin to recover over the coming months, although it said BTC may underperform some other crypto sectors in the near term if those segments benefit more directly from improving regulatory clarity.

Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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