Grayscale Head of Research Zach Pandl said Strategy's ability to accumulate additional bitcoin is constrained at current STRC and MSTR share prices, suggesting that "other buyers will need to step in for bitcoin's price to establish a sustainable bottom."
Pandl's comments came after Strategy (MSTR) disclosed earlier this week that it sold 32 bitcoin (BTC) for about $2.5 million at an average price of $77,135 per BTC, reducing its total holdings to 843,706 BTC. The transaction marked the first time Strategy has sold bitcoin since December 2022.
In a note published Thursday, Pandl said the sale was small relative to Strategy's total BTC holdings. However, he argued that the shift in the company's treasury management weighed on market sentiment already roiled by ongoing geopolitical uncertainty.
According to the note, volatility has also fed into Strategy's variable rate perpetual preferred stock Stretch (STRC), which is designed to trade near $100 and currently pays an 11.5% dividend. A share price below that level raises required investor returns and could increase dividend obligations, which Strategy can meet by adjusting payouts, but at the cost of higher cash-flow pressure tied to its bitcoin-backed balance sheet.
