Strategy sells Bitcoin and puts pressure on the market

Strategy, the world’s largest digital reserve manager, sold 32 Bitcoin on 1 June. That sounds like a small transaction, but according to Grayscale Head of Research Zach Pandl, the sale touches on a much larger problem: the leverage model that Strategy relies on is coming under increasing pressure, and the consequences are being felt across the entire Bitcoin market. The Bitcoin price currently stands at $60.500. a decline of 5.5% in the past 24 hours.

Bitcoin is available at OKX and Bybit.

Weaker preferred shares pose a risk

Strategy largely funds its Bitcoin purchases through the issuance of preferred shares. Pandl argues that falling prices of those shares drive up the company’s dividend obligations. If those obligations become too burdensome, Strategy may be forced to sell more Bitcoin to meet its financial commitments.

That mechanism makes the situation cyclical and potentially dangerous. A lower Bitcoin price reduces the value of the treasury position, which increases the pressure on the preferred shares, which in turn can lead to additional selling. Grayscale indicates that the room for Strategy to continue accumulating Bitcoin is becoming increasingly limited. That is a notable development for a company that for years was regarded as the most aggressive institutional Bitcoin buyer in the world.

Market needs new buyers

In its analysis, Grayscale states that the broader Bitcoin market needs additional buyers to form a sustainable floor. As long as those are lacking, volatility will remain high. The pressure from Strategy’s leverage model adds an extra uncertain factor to that.

The concerns surrounding Strategy are playing out against an already challenging market backdrop. For example, Bitcoin ETFs have seen outflows for 13 consecutive days, a record in itself. Meanwhile, short-term holders reached the worst capitulation point of 2026. At the same time, the Bitcoin price has fallen 16% while the S&P 500 has risen 5%, clearly illustrating the decoupling between crypto and traditional markets.

The chart published by Grayscale also shows the price of STRC, a preferred share of Strategy, which fell from $100 to around $94.50 between 4 May and 3 June 2026. That downward movement precisely illustrates the pressure Pandl describes.