Strategy’s Bitcoin Sale Raises Solvency Concerns As Bitcoin Crashes

Bitcoin slid 21% over ten days, retesting the $61,000 level for the first time in four months as Strategy (MSTR US) paused its accumulation. The move coincided with the company’s May 15 decision to buy back some convertible debt, prompting trader concern that Strategy could be forced to sell parts of its Bitcoin reserve.

Strategy had been the largest known Bitcoin buyer, accumulating 126,016 BTC for $9.31 billion since March. The company used $1.38 billion of cash raised by recent equity issuances to repurchase debt and raised $7.5 billion through preferred stock in the first five months of 2026.

Its cash balance has fallen to $900 million, roughly enough to cover preferred dividends for six months. The STRC preferred shares allow new issuances when the price reaches $100 and carry a variable dividend currently set at 11.5% annually, paid monthly. Key to the debate is Strategy’s 11% net leverage, a measure that suggests its Bitcoin holdings provide conservative coverage even at $30,000 per coin.

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