Zach Pandl, head of research at Grayscale, said Strategy should sell $3 billion in Bitcoin to cover most of the company's cash obligations and help restore market confidence.
Strategy, the world's largest publicly-listed corporate Bitcoin holder, faces about $1.2 billion in annual preferred dividend obligations driven primarily by its STRC "digital credit" preferred stock.
"Probably does not help market confidence," Pandl wrote in an X post about an expected 50-basis-point increase to STRC's dividend rate, which he said would add roughly $100 million in annual obligations over two years.
STRC, designed to trade near its $100 par value, slid to as low as $71.25 on Friday, a 28.75% discount to par, while Strategy's common stock MSTR closed at $82.31, down 26.86% for the week.
Per Strategy's latest 8-K filing, the company holds 847,363 BTC and bought 520 Bitcoin for $34.9 million between June 15 and June 21.
The 8-K also showed Strategy increased its US dollar reserve by $300 million to $1.4 billion, leaving roughly 14 months of dividend coverage, down from a prior seven-year cushion.
CryptoQuant argued the company should pause Bitcoin purchases and rebuild cash reserves, noting they are down 38% in 2026, and added Strategy can use other levers such as raising the current 11.5% dividend yield; Bitcoin advocate Samson Mow said STRC's mechanism of halting ATM issuance below $100 and creating higher yields for new buyers should attract demand and help the price revert toward par.
Strategy said on Monday it will continue replenishing cash reserves to support the credit quality of its digital credit securities.
