Strategy situation ‘out of hand,’ says Arca exec on $15B preferred stock burden

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Source: Yves-André Graf Dorman argues the model was built on the assumption that Bitcoin would continue rising strongly enough to support it, describing it as a bet that BTC was "about to moon" and could fund future obligations. He said Strategy's equity raises helped ease near-term default concerns, but questioned what followed, calling its decision to repurchase 2029 maturity bonds "baffling" given ongoing pressure from dividend obligations. Source: Jeff Dorman According to Dorman, the structure ultimately leaves only stark outcomes: either "sell BTC to pay the prefs" or "stop paying the dividend," each carrying direct and asymmetric consequences for Strategy, its investors and Bitcoin itself. Dorman's remarks came amid Strategy CEO Phong Le confirming that the company might sell Bitcoin at some point in the future after Strategy executive chairman Michael Saylor raised such a possibility in mid-May. "We'll likely sell Bitcoin at some point in time, but we will be net increasing our Bitcoin and more importantly, increasing our Bitcoin per share," the CEO said in a CNBC Fox Business exclusive on Thursday. Related: French company abandons crypto treasury strategy, will liquidate Bitcoin holdings Amid rising expectations that Strategy might need to sell BTC to manage its balance sheet and obligations, the prediction market platform Polymarket has shown increasing odds of a sale across 2026. Source: Polymarket The "MicroStrategy sells any Bitcoin by" market shows roughly a 90% chance by Dec. 31, 2026, 71% by June 30 and 18% by May 31. So far this year, Strategy has purchased around 170,000 BTC, bringing its total holdings to 843,738 BTC purchased at an aggregate purchase price of $63.87 billion and an average purchase price of approximately $75,700 per Bitcoin. Magazine: Bitcoin's 'biggest bull catalyst' would be Saylor's liquidation: Santiment founder More on the subject

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