Grayscale Head of Research Zach Pandl says Strategy Inc.'s (NASDAQ:MSTR) ability to accumulate more Bitcoin (CRYPTO: BTC) is effectively gone at current share prices, as the company now sits on a record $10.8 billion unrealized loss on its holdings.
STRC Below $100 Is The Core Problem Pandl's Thursday note argued that the real issue is not Strategy's 32 Bitcoin sale but what it did to (NASDAQ:STRC), the company's variable rate preferred stock designed to trade near $100.
STRC closed Thursday at $95.42 with $10.5 billion in total notional outstanding.
A price below $100 means investors demand higher returns, forcing Strategy to raise dividends and increasing cash obligations tied to its Bitcoin-backed balance sheet.
"Strategy's levered business model is under pressure, and this has increased the volatility for the BTC market as a whole," Pandl wrote.
