Strategy Faces Pressure to Sell BTC Amid $15 Billion Annual Dividend Burden

ChainCatcher report, according to Cointelegraph, 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 mitigated short-term default risks through equity issuances, its decision to repurchase bonds maturing in 2029 is perplexing. He added that Strategy may ultimately be left with only two options: selling BTC to pay preferred dividends or ceasing dividend payments altogether—both scenarios would have major implications for the company and its investors. Meanwhile, in an interview with CNBC, Strategy CEO Phong Le stated that the company “may sell some Bitcoin” at some point in the future, but overall intends to continue increasing its BTC holdings and raising the amount of BTC per share. Polymarket data shows that market expectations now place the probability of Strategy selling some BTC before the end of 2026 at approximately 90%. To date, Strategy holds 843,738 BTC, with a total cost basis of approximately $63.87 billion, representing an average purchase price of around $75,700.