Opinions, Strategy's preferred stock debt amounts to 15 billion dollars, facing pressure to sell BTC

Arca Chief Investment Officer Jeff Dorman stated that the Strategy's current approximately $15 billion preferred stock financing structure has become "uncontrollable." He pointed out that these preferred stocks require about $1.5 billion in dividends each year, and with the ongoing volatility in Bitcoin prices, this structure is becoming increasingly difficult to maintain. The financing model of Strategy is based on the premise that "BTC will continue to rise significantly." Although the company previously alleviated short-term default risks by issuing additional shares, its decision to repurchase bonds maturing in 2029 is puzzling. He indicated that Strategy may ultimately have only two options: sell BTC to pay preferred stock dividends or stop paying dividends, both of which would have significant impacts on the company and investors.

Meanwhile, Strategy CEO Phong Le, in an interview with CNBC, stated that the company "may sell Bitcoin" at some point in the future, but overall will continue to increase its BTC holdings and enhance the corresponding BTC amount per share. Polymarket data shows that the market now estimates the probability of Strategy selling some BTC by the end of 2026 has risen to about 90%. As of now, Strategy holds a total of 843,738 BTC, with a total cost of approximately $63.87 billion and an average purchase price of about $75,700.