Arca’s Chief Investment Officer Warns: Strategy’s MicroStrategy $15 Billion Preferred Shares “Out of Control,” the Probability of Selling Coins This Year Jumps Above 90%

Relying on issuing bonds to buy Bitcoin is about to shatter the myth? Well-known crypto investment firm Arca's Chief Investment Officer Jeff Dorman today (29th) launched a fierce attack, criticizing that Strategy's (formerly MicroStrategy) $15 billion preferred stock structure has already gone "out of control." Facing the enormous annual dividend pressure of $1.5 billion and currently holding Bitcoin at a loss, Strategy's CEO admitted that they might sell Bitcoin in the future. The market's betting odds on them selling coins this year have soared to 90%, potentially bringing unknown selling pressure and shocks to the crypto market.
(Background: Strategy founder Michael Saylor shouts "HODL on"! Bitcoin drops below $74k)
(Additional context: Is Strategy selling Bitcoin a negative signal? MicroStrategy’s 5 major financial logic breakdown)

The publicly listed company Strategy, formerly MicroStrategy, whose strategy of frantically accumulating Bitcoin with unlimited leverage, is now under severe scrutiny and criticism from Wall Street professional institutions.

Famous crypto asset management firm Arca's CIO Jeff Dorman publicly warns that Strategy's reliance on issuing大量 preferred stocks to sustain its capital structure has now faced a "gotten out of hand" crisis.

The annual $1.5 billion dividend burden, Arca criticizes "structure has gotten out of control"

Jeff Dorman posted on platform X directly pointing out that Strategy's capital structure is built on an extremely optimistic assumption — that "Bitcoin will soon moon," and uses this to support its future dividend obligations.

Data shows that Strategy has issued five different risk-level preferred stocks (codes: STRK, STRF, STRD, STRC, STRE), with a total issuance scale reaching $15 billion. This means the company must generate about $1.5 billion in cash annually to pay the hefty dividends. Dorman is "confused" by Strategy's recent decision to buy back bonds maturing in 2029, believing it cannot solve the heavy dividend pressure brought by preferred stocks.

He sternly points out that if Bitcoin prices continue to fluctuate or decline, Strategy will ultimately face two extreme and deadly choices:

2. Sell Bitcoin to pay preferred dividends.
3. Announce stopping dividend payments.

Dorman warns that whichever path the company chooses, it will have asymmetric and huge negative impacts on its stock price, investor confidence, and even the entire Bitcoin market.

I'm not in Saylor's inner circle, but this $MSTR story has gotten so out of hand, my only guess is this:

– MSTR could have sat and done nothing before they started pumping out $billons of prefs… it would have made MSTR boring (little buys, no sells), but it would have been…

— Jeff Dorman (@jdorman81) May 28, 2026

CEO admits possible coin sale, 840k BTC currently at a loss

Facing market doubts, Strategy CEO Phong Le did not deny the possibility of selling in an CNBC interview. He first confirmed that the company "is very likely to sell Bitcoin at some point in the future," but also emphasized that the overall strategy remains "net increase" in Bitcoin holdings, and continues to increase the amount of Bitcoin (BTC per share) implied by each share. This also echoes the previous hints from Executive Chairman Michael Saylor about potential compromises.

However, the market is clearly worried about its financial resilience. On the prediction market Polymarket, the odds of "Strategy selling Bitcoin in 2026" have recently surged:

• Selling before May 31, 2026: about 18%
• Selling before June 30, 2026: about 71%
• Selling before December 31, 2026: as high as 90%

What makes investors even more nervous is Strategy's current unrealized losses. As of the report, Strategy holds an astonishing 843,738 BTC (including about 170k bought this year), with a total purchase cost of approximately $63.87 billion, and an average buy-in cost of $75,700.

However, recent Bitcoin prices have been weak, currently around $73,737 (down about 16% this year). This means the world's largest Bitcoin company holder is currently in a "total unrealized loss" situation. The huge interest pressure and paper losses may crush Strategy's Bitcoin faith, making it one of the biggest unexploited bombs in the crypto world in the second half of 2026.