Saylor's Bitcoin Stash Faces a $4B Exfoliant: Arca Says STRC May Force the Scrub 🧽

Arca Chief Investment Officer Jeff Dorman said Strategy (NASDAQ: MSTR) could be compelled to offload around $4 billion worth of Bitcoin, or alternatively dump its own common stock, in order to push the firm's STRC preferred shares back toward their $100 par value. Dorman's remarks were published on X and come as Strategy's STRC preferred stock slid to as low as $82.53 on June 18 before rebounding to close at $88.59, well below the $100 target.

Dorman framed the situation as "the MSTR pickle continues," writing that management will have to make a hard decision because of mounting pressures on its capital structure. "Either sell an enormous amount of BTC and MSTR to help bring STRC back up near par," he wrote, or "watch every part of your cap structure melt because of the uncertainty [they've] created." He assigned a 70% probability to his base case that Strategy will continue selling "small amounts of MSTR every m..." — a plan he presented as an alternative to deeper Bitcoin sales.

The comments follow Strategy's recent sale of 32 BTC, a move that drew criticism from crypto market participants given Michael Saylor's long-standing public guidance that investors should not sell their Bitcoin holdings. Separately, a market note from trading firm QCP suggested the company may need to liquidate additional Bitcoin to support near-term dividend payments, and noted that macro conditions have improved slightly with reduced geopolitical tensions.

Peter Schiff publicly warned of potential lawsuits against Strategy and Saylor tied to STRC's slide. Meanwhile, MSTR shares pulled back at the start of the month following the earlier Bitcoin sale, even as the firm continued fundraising activity and additional Bitcoin purchases. Strategy has not publicly responded to Dorman's $4 billion estimate, and QCP's note did not specify a dollar figure for any potential Bitcoin sales beyond flagging the dividend-related pressure.