Strategy Faces Pressure to Sell $3 Billion in Bitcoin

Strategy, a company known for its massive Bitcoin holdings, is facing renewed scrutiny over its financing model. The company's balance sheet has come under pressure as investors question whether it should continue to accumulate BTC or use part of its holdings to support its credit-linked securities.

The issue revolves around Strategy's flagship 'digital credit' preferred stock, STRC, which has been trading below its $100 par value. This has raised concerns about the company's ability to meet its recurring cash obligations and maintain a comfortable dividend coverage ratio.

Zach Pandl, head of research at Grayscale, believes that selling at least $3 billion in Bitcoin would be the most direct way for Strategy to rebuild its cash reserve and reduce near-term financing anxiety. This move could also strengthen cash coverage but weaken the perception that its bitcoin treasury is untouchable.

CryptoQuant, a blockchain analytics firm, has argued that Strategy should stop buying BTC for now and focus on replenishing its cash reserve, which is down 38% in 2026. The company's U.S. dollar reserve stands at $1.4 billion, but this still leaves roughly 14 months of dividend coverage, sharply below the previous 7-year cushion.

Strategy has alternatives to selling Bitcoin, including raising the current 11.5% dividend yield or using other methods to support STRC's price. However, a bitcoin sale would mark a psychological shift for a company whose public identity has been tied to relentless BTC accumulation.