Grayscale analyst: sale of $3 billion worth of Bitcoin can restore confidence

Zach Pandl, head of research at Grayscale, makes a striking statement about what Strategy should do next week to restore market confidence. According to him, an increase in the STRC dividend is probably not enough, but a large Bitcoin sale of more than $3 billion would be.

Bitcoin is available at OKX and Bybit.

Dividend increase probably not enough

Pandl expects Strategy to raise the dividend on STRC by 50 basis points next week. That may sound positive, but he is not optimistic about it. A 50-basis-point increase means an additional dividend obligation of approximately $100 million over the next two years. That is a significant amount that is likely to harm investor confidence rather than strengthen it.

The analyst thereby makes a clear distinction between what he expects Strategy to do and what he hopes the company will do. These two scenarios diverge considerably, making his analysis all the more interesting for anyone watching Strategy’s moves.

Selling Bitcoin as key to restoring market confidence

Pandl argues that a sale of more than $3 billion in Bitcoin would be a much more effective move. With those proceeds, Strategy could cover virtually all of its cash obligations for the next two years, except for one convertible bond. That would give the company financial stability and demonstrate that it takes its obligations seriously.

Such a move would likely restore market confidence, according to Pandl. Strategy has long been known for its aggressive Bitcoin strategy, holding large amounts of BTC on its balance sheet. The Bitcoin price currently stands at $60K, a nearly unchanged level with a decline of just 0.1% in the past 24 hours. Whether Strategy will actually opt for the sale remains to be seen.