Grayscale's Pandl hopes Strategy sells $3B in Bitcoin to restore confidence
Zach Pandl of Grayscale said Strategy should sell at least $3 billion in Bitcoin to cover most cash obligations for the next two years, arguing that could improve confidence in its capital structure. He expects instead that Strategy will raise the dividend rate on its STRC preferred stock by 50 basis points, adding about $100 million in annual obligations over two years, which he said would likely hurt confidence. Strategy faces about $1.2 billion in annual preferred dividend obligations, mostly from STRC, which has fallen well below its $100 par value. The company’s common stock has also dropped sharply. Strategy’s cash reserve is under pressure, with about $1.4 billion in U.S. dollars and roughly 14 months of dividend coverage. It has continued buying Bitcoin, but analysts say it should pause purchases and rebuild cash. Others argue Bitcoin sales are not necessary because Strategy can defend STRC through higher yields and other measures.
