Grayscale's Pandl Says Strategy's $3B Bitcoin Sale Could Restore Confidence

Zach Pandl, head of research at Grayscale, said he hopes Strategy will sell at least $3 billion in Bitcoin to cover most of the company’s cash obligations for the next two years and that the move may restore market confidence in the company's capital structure.

He expects a 50-basis-point increase to the dividend rate on Strategy’s preferred stock, STRC, which would add roughly $100 million in annual obligations over two years and “probably does not help market confidence.” Strategy faces an annual preferred dividend obligation of approximately $1.2 billion, driven primarily by STRC.

STRC, the flagship “digital credit” preferred stock designed to trade near its $100 par value, has been sliding for weeks; it fell to as low as $71.25 on Friday, a 28.75% discount to par. Strategy’s common stock, MSTR, closed Friday at $82.31, down 26.86% for the trading week.

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