Opinion: Strategy's preferred stock debt reaches $15 billion, facing pressure to sell BTC.

According to Huoxun Finance, Arca's Chief Investment Officer, Jeff Dorman, pointed out that Strategy's current preferred stock financing structure, amounting to approximately $15 billion, is out of control. This preferred stock requires annual dividend payments of about $1.5 billion, and maintaining this structure is becoming increasingly difficult given the volatility of Bitcoin prices. Strategy's financing model is based on the assumption that Bitcoin will continue to rise significantly. Previously, the company mitigated short-term default risks by issuing new shares, but the logic behind its repurchase of bonds maturing in 2029 is questionable. He believes Strategy may ultimately face two choices: selling Bitcoin to pay preferred stock dividends, or ceasing dividend payments, both of which will have a significant impact on the company and investors. Strategy CEO Phong Le stated in an interview with CNBC that the company may sell Bitcoin at some point in the future, but will continue to increase its overall BTC holdings and the number of BTC per share. Polymarket data shows that the market expects the probability of Strategy selling some of its BTC by the end of 2026 to have risen to approximately 90%. As of now, Strategy holds 843,738 BTC, with a total cost of approximately $63.87 billion and an average purchase price of approximately $75,700.