Grayscale research head Zach Pandl said that Strategy’s sale of 32 BTC, while modest in scale, intensified market concerns about its leveraged Bitcoin reserve model. The firm noted that the price of STRC preferred shares falling below $100 has increased financing costs and cash flow pressure, potentially limiting Strategy’s ability to continue accumulating BTC. Grayscale believes that more buyers need to enter the market for BTC to form a sustainable bottom, and in the long term, broader corporate diversification of Bitcoin holdings will help strengthen market resilience. https://t.co/bD7zSMQusx
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