BlockBeats news, on May 29, Arca’s Chief Investment Officer Jeff Dorman stated that Strategy’s current $15 billion preferred stock financing structure has “gotten out of control.” He noted that these preferred shares require approximately $1.5 billion in annual dividends, making the structure increasingly difficult to sustain amid ongoing volatility in Bitcoin’s price. Strategy’s financing model is predicated on the assumption that BTC will continue to rise significantly. Although the company previously alleviated short-term default risks through additional stock issuances, its decision to repurchase bonds maturing in 2029 remains puzzling.
He stated that Strategy may ultimately face only two options: selling BTC to pay preferred dividends or ceasing dividend payments altogether—both scenarios would have significant implications for the company and its investors. Meanwhile, in an interview with CNBC, Strategy’s CEO Phong Le said the company “may sell some Bitcoin” at some point in the future, but overall will continue to increase its BTC holdings and raise the amount of BTC per share.
Polymarket data shows that the market now estimates the probability of Strategy selling a portion of its BTC by the end of 2026 has risen to approximately 90%. As of now, Strategy holds a total of 843,738 BTC, with an overall cost of approximately $63.87 billion, representing an average purchase price of around $75,700.