Grayscale's Zach Pandl: Selling $3B in Bitcoin Could Cover Strategy's Near-Term Cash Needs
Grayscale Research head Zach Pandl said Strategy may need to take more decisive steps to ease investor worries about rising cash obligations, arguing that a sizable Bitcoin sale would be more effective than sweetening preferred payouts.
In comments published ahead of next week, Pandl estimated that a 50-basis-point increase in the dividend on Strategy's STRC preferred shares would add roughly $100 million in additional obligations over the next two years, while doing little to lift market confidence. He said selling at least $3 billion of Bitcoin could cover most of the company's cash commitments over the same period and help restore confidence.
Pandl framed next week as presenting two potential paths. One option is a higher STRC dividend, which he characterized as incremental cost with limited reputational benefit. The alternative he favors is a Bitcoin sale of at least $3 billion, with proceeds sufficient to meet nearly all cash obligations over the next two years, excluding one convertible debt issue.
The debate comes as Strategy's capital structure draws renewed scrutiny. Pandl said the company faces about $1.5 billion in annual preferred dividend obligations, while its software business generates about $477 million in annual revenue, leaving a wide gap between operating cash generation and dividend commitments.
Pandl also pointed to Strategy's sale of 32 BTC in late May—its first Bitcoin sale since 2022—with proceeds directed to preferred dividend payments. While small relative to the company's holdings, the transaction drew market attention.
Strategy currently holds more than 840,000 BTC, making it the largest corporate holder of Bitcoin. Pandl noted continued weakness in STRC, warning that sustained trading below the expected $100 value could add to future financial pressure.
When Pandl published his analysis, Bitcoin was trading near $60,000, and the broader market had absorbed about $3 billion in spot Bitcoin ETF outflows in the preceding weeks. He urged investors to watch STRC pricing and upcoming Strategy filings for any shifts in the company's Bitcoin treasury and disposition policy.
