Grayscale defends Strategy’s Bitcoin sale with unexpected bullish case

Grayscale Research has argued that Strategy’s recent $216 million Bitcoin sale has improved the company’s financial position while helping create conditions for a more stable Bitcoin price.

According to a July 6 report from Grayscale Research, the market reaction to Strategy’s decision to sell part of its Bitcoin holdings has overlooked what the firm sees as a strengthening of the company’s balance sheet rather than a sign of financial stress.

The report comes after Michael Saylor’s company faced criticism when Bitcoin briefly fell to the $61,000 area following the announcement before recovering above $63,000.

Grayscale Head of Research Zach Pandl wrote that Strategy’s financing structure remains well supported despite concerns raised by some market participants.

Strategy, the largest corporate Bitcoin holder, owns 843,775 BTC valued at nearly $53 billion while carrying almost $7 billion in debt. According to Grayscale, the company’s annual preferred equity dividend obligations remain below $2 billion, leaving it with sufficient financial capacity to meet both debt and dividend commitments.

Higher cash reserves strengthen Strategy’s financial position

Grayscale said the $216 million Bitcoin sale increased Strategy’s U.S. dollar reserves to roughly $2.55 billion, enough to cover nearly 17 months of dividend payments under current obligations. According to the research note, maintaining a larger cash buffer lowers financing risk and could improve investor confidence in the company’s capital structure.

Alongside the sale, Strategy introduced a treasury framework stating it may issue shares or sell Bitcoin whenever necessary to maintain adequate U.S. dollar reserves for dividend payments. Grayscale argued that this policy gives the company greater flexibility during periods of market volatility without forcing emergency financing measures.

Pandl also said in the report that reducing financing pressure may benefit Bitcoin itself. Rather than viewing the sale as bearish, Grayscale argued the transaction could help Bitcoin establish a more durable price bottom by easing concerns surrounding Strategy’s balance sheet and funding needs.

Investors have continued backing the company

Trading activity has suggested investors remain comfortable with Strategy’s latest decision. STRC shares finished Monday 0.81% higher at $88.58 before adding another 0.51% to around $89 in premarket trading on Tuesday.

At the same time, Binance launched trading for STRC tokenized stock, allowing users to gain exposure to the company’s shares without using traditional brokerage accounts.

Meanwhile, MSTR also rose 0.45% to $101.22 during Tuesday’s trading session after recovering from an early intraday dip. The stock remains nearly 18% higher over the past week. Separately, Cantor Fitzgerald reiterated its buy rating on MSTR and maintained a 12-month price target of $212, indicating the firm remains optimistic despite recent market volatility.

Bitcoin has also recovered from the initial selloff that followed the announcement. The cryptocurrency traded near $64,000 after touching a 24-hour low of $61,275 and reaching a high of $64,597. The rebound coincided with a 77% increase in trading volume over the past day.

Recent market sentiment has also improved following the return of net inflows into BlackRock’s spot Bitcoin ETF after several weeks of outflows. Combined with seasonal market strength, those inflows have helped support Bitcoin’s recovery even as investors continue assessing the impact of Strategy’s updated treasury policy.