Grayscale Says Strategy Faces Test as Capacity for More Bitcoin Buying Shrinks

Strategy, the world’s largest corporate Bitcoin treasury company, is running into headwinds in its accumulation strategy, according to an analysis.

Cointelegraph reported on June 5 that Grayscale Research Head Zach Pandl said changes in Strategy’s approach are weighing on market sentiment.

Strategy sold 32 Bitcoin on June 2. The amount was minimal compared with its total holdings of 843,706 Bitcoin, but the market reacted negatively. After the sale, Bitcoin fell about 16%, while Strategy shares dropped 12.8% to $126, the lowest level in two months. Strategy’s preferred stock, Stride (STRC), also fell below par to $95.

If Strategy raises dividend yields further to attract investors, its cash burden would increase, Pandl said. That could trigger a vicious cycle in which the company has to sell more Bitcoin to cover the cost. He added that Strategy’s leveraged business model is under pressure, and that is increasing volatility across the broader Bitcoin market. At the current share price, its capacity for additional accumulation would be limited.

Pandl also said that, over the long term, the Bitcoin ecosystem would be healthier if there were fewer digital-asset treasury companies relying on leverage and more Bitcoin held by companies with clearer business structures.