Analysis: If the Strategy must sell BTC to pay dividends, it faces the risk of a downward spiral.

BlockBeats News, June 18 — CryptoQuant analyst Maartunn stated that, based on current prices, Strategy's BTC reserves can cover its dividends for about 32 years. But if Strategy must sell BTC to pay these dividends, it will create selling pressure, potentially driving down BTC prices. A decline in BTC price would also reduce the value of its BTC reserves and shorten the dividend coverage period it emphasizes. In other words, if this situation persists, there is a risk of evolving into a downward spiral.

Previously reported, Strategy issued preferred shares STRC, which severely decoupled from the peg and hit a recent low, closing at $88.9. The large decoupling of STRC indicates that the market demands higher yields and also shows that investors' confidence in its credit/dividend stability has declined. Strategy previously relied heavily on issuing STRC to finance Bitcoin purchases; if STRC trades below face value, issuing new STRC becomes unprofitable for the company, effectively increasing borrowing costs. Therefore, its "ability to continue buying coins" will be weakened. In response, Strategy stated on social media: "The company's Bitcoin reserves are sufficient to cover 32 years of dividends," attempting to stabilize the market.