Grayscale referred to Strategy’s first Bitcoin sale in a long time as a ‘stress test’ of its financial model. The small transaction to ‘unload’ reserves triggered a negative market reaction and cast doubt on the aggressive accumulation strategy.
On June 1, the firm sold 32 BTC and also liquidated its own shares worth $128 million. Amid this, the price of the leading cryptocurrency fell by 16%, despite the sale’s minor volume compared to the company’s total reserve of 843,706 BTC.
Grayscale’s Director of Research, Zach Pandl, noted that by June 5, the company’s stock (MSTR) had dropped 12.8%, reaching a two-month low of $126.
Grayscale also pointed out the decline in STRC with a floating rate. The paper was intended as an instrument priced around $100 with an 11.5% dividend, but it is currently trading at about $95. If Strategy raises the dividend to close the discount, the company’s financial obligations will increase—potentially prompting further sales of digital gold, adding pressure to the market.
Grayscale believes that at current STRC and MSTR levels, Strategy’s ability to continue aggressive Bitcoin accumulation is limited. Pandl added that in the long term, the ecosystem benefits from a broader distribution of Bitcoin across diversified corporate balances, rather than concentration in companies increasing their position through debt leverage.
SignalPlus partner Augustin Fan commented to Cointelegraph that it is becoming harder for investors to maintain a bullish stance amid the STRC discount.
Meanwhile, CoinEx’s chief analyst Jeff Ko believes that transitioning to more flexible portfolio management will help Strategy more effectively control risks, rather than adhering to an accumulation strategy in all market conditions.
In May, Strategy repurchased its own convertible bonds maturing in 2029 for $1.5 billion. The transaction was completed at a discount of about 8% to the nominal value.