- Investors are scrutinizing Strategy’s $15 billion preferred stock model, concerned its $1.5 billion annual dividend obligation could force Bitcoin sales.
- Arca CIO Jeff Dorman warns the structure has “gotten out of hand,” predicting stark outcomes if BTC’s price remains volatile.
- Strategy CEO Phong Le confirmed the company may sell Bitcoin in the future, while prediction markets show high odds of a sale by 2026.
The financial strategy of corporate Bitcoin giant Strategy is under intense investor scrutiny this week as analysts question its ability to manage massive dividend payments without selling its cryptocurrency holdings. Jeff Dorman, Chief Investment Officer at Arca, stated the situation has “gotten out of hand” in an X post on Thursday.
His warning centers on Strategy’s roughly $15 billion in preferred stock, which carries around $1.5 billion in annual dividend obligations. Dorman argued this model was a bet that Bitcoin trading about 16% lower year-to-date would continue rising strongly to fund future payments.
Consequently, he sees only two difficult paths forward: “sell BTC to pay the prefs” or “stop paying the dividend.” This debate adds pressure as Strategy’s Bitcoin-linked capital structure faces prolonged market volatility.
Meanwhile, Strategy CEO Phong Le confirmed the company might sell Bitcoin at some point in the future. He made this statement during a CNBC Fox Business exclusive on Thursday, echoing earlier remarks from executive chairman Michael Saylor.
Amid these developments, prediction markets show rising expectations for a sale. The MicroStrategy-sell-any-bitcoin-in-2025″ rel=”nofollow noopener” target=”_blank”>Polymarket platform indicates roughly a 90% chance Strategy sells Bitcoin by December 31, 2026. So far this year, the company has purchased around 170,000 BTC, bringing its total holdings to 843,738.
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