Grayscale Head of Research Zach Pandl said pressure on Strategy’s leveraged Bitcoin accumulation model is adding volatility to the wider BTC market after the company disclosed the sale of 32 Bitcoin on June 1. The sale was small compared with Strategy’s overall holdings, but it changed market sentiment because the company has long been viewed as Bitcoin’s largest corporate buyer. Strategy holds more than 818,000 BTC and is often described as holding roughly 840,000 BTC, with the position valued near $55 billion at recent prices. Source: X The company’s Bitcoin cost basis is estimated to be around $61.8 billion to $63.8 billion, with an average purchase price of $75,500 to $75,700 per BTC. With Bitcoin trading near or below $62,000, Strategy is facing an unrealized loss estimated between $11 billion and $12 billion. Strategy’s 32 BTC Sale Draws Market Focus Grayscale said the sale of 32 BTC helped spark a fresh round of volatility because it raised questions about Strategy’s ability to keep buying Bitcoin at the same pace. The amount sold was minor, but the action stood out because Strategy had become known for long-term accumulation rather than selling. Peter Schiff also commented on the sale, arguing that Strategy’s years of buying more than 840,000 BTC helped push Bitcoin higher and that any shift in the company’s approach can affect market confidence. Schiff said Strategy is now the largest Bitcoin buyer and the largest Bitcoin loser, referring to its current paper loss. Strategy’s stock has also remained under pressure. Market commentary showed MSTR trading as a leveraged proxy for Bitcoin, with a beta near 1.77. The company has previously targeted ownership of 1 million BTC by the end of 2026, which would require the purchase of roughly 180,000 more BTC depending on the final reported balance. STRC Price Adds Pressure to Treasury Model The focus has shifted to Stretch, Strategy’s variable-rate perpetual preferred equity instrument, which trades under STRC. The product is designed to trade around $100 per share and currently pays an 11.5% dividend. STRC has recently traded below $100, meaning investors are demanding a higher return. If Strategy raises the dividend to support the preferred share price, its future cash-flow obligations would increase. Grayscale said that could make the company’s financing model more difficult and may increase the risk of additional Bitcoin sales. The concern is that higher dividend obligations could reduce Strategy’s ability to issue preferred equity efficiently and continue buying BTC. At current MSTR and STRC share prices, Grayscale said Strategy’s ability to accumulate more Bitcoin appears more limited than before. Critics have also raised concerns about a dividend burden that could exceed $1 billion annually if preferred stock obligations keep expanding. Supporters of the model argue that Strategy still has access to capital markets and that Bitcoin volatility is part of the company’s long-term strategy. Digital Asset Treasury Losses Broaden The pressure on Strategy comes as other digital asset treasury firms face large unrealized losses. Market data cited by traders showed Strategy down about $11.07 billion on BTC, Bitmine down about $9.58 billion on ETH, SharpLink down about $1.59 billion on ETH, Metaplanet down about $1.38 billion on BTC and Forward Industries down about $1.13 billion on SOL. Grayscale said the long-term health of Bitcoin may benefit from less BTC being concentrated on leveraged digital asset treasury balance sheets and more being held across diversified corporate balance sheets. The firm also said additional buyers may be needed before Bitcoin can form a sustainable bottom. Bitcoin has also faced pressure from weak ETF flows, lower liquidity and capital rotation into artificial intelligence stocks. Michael Saylor has said recent weakness reflects capital moving into AI infrastructure rather than a change in Bitcoin’s long-term outlook. Grayscale still expects Bitcoin to recover over the coming months, but it said BTC may lag other crypto market segments that benefit more directly from regulatory clarity in the near term.
