Grayscale Warns Strategy Faces Limited Bitcoin Buying Ability as STRC Dividend Pressure Mounts

According to Grayscale Head of Research Zach Pandl, Strategy (Nasdaq: MSTR) may have limited ability to acquire additional bitcoin at current share prices for both MSTR and STRC, the company's variable-rate preferred equity instrument. Pandl noted that Strategy's leveraged business model is under pressure, with STRC dividend obligations potentially forcing higher returns and constraining future bitcoin purchases.

STRC, which pays an 11.5% dividend, traded at $93.40 against its $100 target level, implying an effective yield of 12.31%. The funding pressure follows Strategy's first bitcoin sale since 2022, when it disposed of 32 BTC last week. Despite Grayscale's concerns, Strategy's leadership has reaffirmed its accumulation strategy, with CEO Phong Le stating the company aims to increase net bitcoin and bitcoin per share over time.