According to the research director of Grayscale (LowBeta), Strategy Inc. is facing a core cash flow issue: approximately $1.5 billion in annual preferred stock dividends exceed the software division's revenue of $477 million, with a ratio of over 3 to 1. In a podcast with journalist Laura Shin, the head of research argued that the problem is “a cash flow issue, not a crypto issue,” and also stated that bitcoin does not generate returns to pay preferred dividends. Strategy sold 32 BTC for about $2.5 million at the end of May to fund preferred stock dividends, marking the company's first bitcoin sale since 2022. The company's preferred equity layer has swollen to around $15.5 billion by mid-2026.