Grayscale warns Bitcoin needs new sources of demand as Strategy’s ability to keep accumulating BTC becomes increasingly constrained.
Bitcoin News
Grayscale has put a number on the limit facing the largest corporate holder of Bitcoin (BTC). In a research note published on June 4, head of research Zach Pandl said Strategy has little room left to keep buying at current prices, and BTC will need demand from elsewhere to settle on a firm price floor.
The constraint runs through Strategy's own securities. Pandl said the company cannot add much more BTC while prices stay low on both its MSTR common shares and its STRC preferred stock. With BTC’s biggest buyer slowing, the market is left looking for who fills the gap.
The note arrived days after a move Strategy had avoided for more than two years. The company sold 32 BTC for about $2.5 million, at an average of $77,135 per coin, cutting its total to 843,706 BTC. The last time it sold any BTC was December 2022.
Pandl described the sale as minor compared to the company's overall holdings. He still tied it to softer sentiment—in a market already strained by geopolitical uncertainty—because of what it signaled about the firm's treasury management.
Much of that signal points to STRC, a variable-rate perpetual preferred share designed to trade near $100 and paying an 11.5% dividend. When the price falls below that level, the return investors require rises, which can push up dividend costs and tighten cash flow on a balance sheet backed by BTC.
A Leveraged Model Under Strain
That mechanism is behind Pandl's read that Strategy's leveraged model is under pressure, a strain he linked to wider swings across the BTC market. A company known for years as a steady net buyer now has limited capacity to continue adding coins.
The share prices reflect the squeeze. STRC closed at $95.42 after a 0.8% gain and has not traded above $100 since mid-May, with a notional value near $10.5 billion. MSTR rose 2.2% to $129.37, though it remains down about 30% over the past month.
BTC traded near $62,354 on June 5, a 2% decline on the day and roughly 50% below its October 2025 high of about $126,000. Demand showed one sign of life on the fund side. US spot Bitcoin exchange-traded funds (ETFs) drew $3.05 million in net inflows, ending 13 straight days of outflows, according to SoSoValue, with BlackRock's IBIT and Morgan Stanley's MSBT the only positive funds at $47.7 million and $9.9 million, respectively.
Source: CoinMarketCap
Looking past the immediate sell-off, Grayscale said the market would grow more resilient if BTC ownership spreads across more companies, rather than concentrating in leveraged digital asset treasuries.
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