Strategy Inc. dismissed concerns this week that it could face a “death spiral” of forced bitcoin liquidations, even as market speculation intensified during bitcoin’s brief drop toward $60,000. Analysts from Benchmark and TD Cowen reaffirmed buy ratings, arguing the company’s financial structure remains resilient and well-capitalized.
Analysts reject liquidation fears
Benchmark analyst Mark Palmer said large-scale bitcoin sales are unlikely in the near term, noting the company would first need to exhaust its roughly $1 billion cash reserve allocated for preferred dividend payments. Strategy currently holds about 846,842 BTC, valued near $55 billion, and its capital structure is designed to insulate those holdings from short-term obligations.
TD Cowen analysts Lance Vitanza and Jonnathan Navarrete echoed that view, stating dividend commitments are supported by existing reserves and could be further reinforced by moderate bitcoin price growth.
Recent transactions signal planned strategy
Between late May and early June, Strategy sold 32 BTC for about $2.5 million at an average price of $77,135. The company said the sale was a routine move to fund dividend payments tied to its Variable Rate Perpetual Stretch Preferred Shares (STRC), not a reaction to market stress.
Soon after, the firm acquired 1,587 BTC for حوالي $100 million at an average price of $63,024. The purchase was funded through a $209 million at-the-market stock sale, reinforcing its approach of raising capital externally rather than liquidating crypto holdings.
Financial structure cushions volatility
As of mid-June 2026, Strategy reported a $1.1 billion U.S. dollar reserve dedicated to servicing dividends and debt. This buffer separates operational cash needs from its bitcoin position, limiting the risk of forced selling during downturns.
The STRC preferred shares, trading near $100 with a yield around 11.5%, are a central part of that structure. The instrument is designed to convert demand for income-focused assets into long-term bitcoin exposure while reducing volatility. Company data shows STRC has delivered stable or slightly positive returns even during sharp bitcoin declines.
To further stabilize the instrument, the firm recently shifted dividend payments from monthly to twice monthly, aiming to improve liquidity and reduce price swings.
Market backdrop and performance
Bitcoin traded above $66,000 on Monday after rebounding from a June low near $59,110, though it remains significantly below last year’s peak. Broader sentiment has been fragile, with the Crypto Fear and Greed Index dropping to 8 earlier in the month amid heavy outflows from bitcoin ETFs, which recorded about $2.43 billion in net withdrawals in May.
Conditions have started to stabilize, supported by renewed inflows into ETFs and signs that much of the forced selling pressure has eased.
Stock outlook remains pressured but supported
Strategy’s stock remains under pressure, trading करीब 73% below its 52-week high. Still, Wall Street sentiment is broadly constructive, with a consensus 12-month price target around $351.54 and some projections reaching as high as $570.
The company’s average bitcoin purchase price now stands at $75,656, above current trading levels, leaving it with a significant unrealized loss. Even so, analysts maintain that its financing model and reserve structure are designed to withstand such periods without triggering large-scale asset sales.
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