Grayscale Raises Concerns Over Strategy’s Ability to Keep Buying Bitcoin

Grayscale’s research chief, Zach Pandl, said Strategy’s recent sale of 32 BTC has intensified concerns about the sustainability of its leveraged Bitcoin accumulation strategy.

Pandl warned that declining preferred-share prices could increase the company’s dividend obligations, adding financial pressure and potentially forcing further Bitcoin sales. As these costs rise, Grayscale believes Strategy’s ability to continue expanding its BTC holdings may become increasingly constrained.

The firm added that such limitations could contribute to heightened volatility across the broader cryptocurrency market. Against this backdrop, Grayscale said additional buying demand from other investors may be needed for Bitcoin to establish a more sustainable price floor.

Source: Grayscale