The biggest whale in the Bitcoin market is at a crossroads.

Recently, one of the most prestigious business media outlets globally (Forbes) unusually published a strong bearish article on MicroStrategy (now rebranded as Strategy), comparing it to a $60 billion 'block tower'—spectacular and captivating, but could collapse at any moment.

This 'block tower' is not without merit. As the largest bull in the global Bitcoin market, MicroStrategy's every move profoundly impacts the direction of the entire crypto market, and the height of this tower is exceeding everyone's expectations.

I. Surpassing BlackRock, The New King of the Bitcoin Market

By April 2026, Strategy officially surpassed BlackRock's iShares Bitcoin Trust (IBIT) with about 798,000 BTC holdings, jumping to 815,061 Bitcoins to become the world's largest institutional Bitcoin holder. Given the total Bitcoin supply of 21 million, MicroStrategy's holdings account for approximately 3.8%, second only to the estimated 1.1 million Bitcoins held by Bitcoin's anonymous creator, Satoshi Nakamoto.

From early February to the end of April this year, Strategy, formerly known as MicroStrategy, accumulated a total of 103,690 Bitcoins, spending over $7.5 billion. According to the latest data, the company’s current holdings have further risen to 818,869 BTC, with a total increase of 145,834 BTC this year, investing around $11 billion. JPMorgan analysts estimate that the company's total Bitcoin purchases this year could reach as high as $30 billion.

This company began buying heavily in 2020, and crucially — for years it only bought and never sold. But where does its money come from?

II. STRC: The Magical "Money Printer"

The answer lies in MicroStrategy's unique product design — STRC (Stretch Variable Rate Perpetual Preferred Stock).

In the eyes of many traditional investors, directly buying Bitcoin seems unreliable, and crypto exchanges raise concerns, but buying stocks listed on Nasdaq is different — everyone thinks stocks are much safer than crypto. Thus, STRC perfectly fits the needs of this segment of investors.

The core logic of STRC is: MicroStrategy uses all raised funds to buy Bitcoin, then issues preferred stock, allowing investors to buy the company's shares at a price above net asset value, with the profit returned to investors in the form of dividends. This "issue shares - finance - buy coins" cycle has operated quite smoothly over the past two years, providing MicroStrategy with a continuous supply of ammunition.

The advantages of STRC are reflected in several aspects: it pays in USD, offers an annualized yield of 11.5%, pays monthly cash dividends, regularly pays interest, and adjusts the dividend yield dynamically each month, aiming to stabilize the stock price around the $100 par value. As of early May 2026, STRC has raised approximately $8.5 billion, propelling this once-obscure software company to the top of the global preferred stock market cap.

Even more astonishing, MicroStrategy founder Michael Saylor has publicly stated that this financing method could theoretically raise $100 billion. Although outsiders think he’s lost his mind, this model is indeed growing rapidly — MicroStrategy's preferred stock market cap has soared from $2.5 billion to $8.5 billion.

III. Perfect Loop and Potential Risks

MicroStrategy's business model has formed a perfect loop: STRC raises funds → buys BTC → BTC price rises → STRC price is supported → continues to issue shares for fundraising. And behind this smoothly operating loop lie two important macro backgrounds: the long bull market of US stocks and the continuous rise of Bitcoin.

However, any seemingly perfect design harbors risks. As Forbes stated with the analogy of a tower of blocks, its stability is built on two foundations: US stocks continuously rising and Bitcoin continuously rising. When these premises start to wobble, the balance of this towering structure will be disrupted.

Entering 2026, risks are gradually surfacing. The Fed's hawkish stance and rising US Treasury rates put greater pressure on STRC's dividend payouts. Meanwhile, the inflow of funds into Bitcoin ETFs is also decreasing, and market uncertainty is on the rise.

IV. Saylor's "Showdown": From "Never Sell" to "Possible Sale"

On May 5, 2026, Strategy reported its Q1 2026 earnings, showing a net loss of $12.54 billion, primarily due to Bitcoin's price dropping from $90,000 to a range of $60,000 to $65,000, resulting in an unrealized loss of about $14.46 billion from its 818,334 BTC holdings.

The market-shaking news comes from the earnings call. Executive Chairman Michael Saylor publicly stated for the first time that the company "might sell a small amount of Bitcoin to pay STRC dividends," aiming to "get the market used to it and signal what we can actually do." While he emphasized that "for every Bitcoin sold, the goal is to buy back 10 to 20," the significance of this statement alone is monumental — it's the first time since the company's inception that this Bitcoin giant has broken its core commitment of "never selling." In December 2022, MicroStrategy sold 704 BTC for tax management, but that was just a small-scale operation.

Upon the news, MSTR's stock price dropped over 4% to $178.80 in after-hours trading, as the market viewed it as a symbolic loosening of Saylor's long-standing position.

Almost simultaneously, Strategy clarified in an 8-K filing submitted to the SEC that "selling Bitcoin" was one of the potential funding sources for repurchasing $1.5 billion in convertible bonds. The company also adjusted the frequency of preferred stock interest payments from once a month to twice a month, announcing the issuance of perpetual preferred stock STRF with a 10% annual interest rate to address cash flow pressures.

Polymarket's predictions show that the odds of Strategy selling Bitcoin before the end of 2026 have soared to 86%. Just last week, when the STRC price fell below the $100 par value, this "money printer" hit the pause button — STRF, STRC, STRK, and STRD preferred shares saw zero sales between April 27 and May 3, causing the financing engine to stall, with weekly buying volume plummeting from 34,164 in April to just 535.$BNB

V. In Conclusion

Once upon a time, MicroStrategy was the most steadfast bull flag in the global Bitcoin market. The mantra of "only buy and never sell" once filled countless investors with confidence. But now, with STRC financing channels tightening, bi-weekly interest payment pressures looming, and significant shifts in management’s tone, the stability of this $60 billion tower of blocks is no longer a given.

Forbes' bearish view may be exaggerated, but the challenges faced by MicroStrategy are indeed real:

· Rising US Treasury rates will compress STRC's financing space;

· Slowing inflows into BTC ETFs have led to a decrease in incremental buying in the market;

· The company's annual dividend burden is about $1.5 billion, and current reserves are only enough to cover about 18 months;

· Holdings are highly concentrated; any sale would trigger a chain reaction in the market;

· Rising financing costs mean that the high dividend yield of 11.5% is becoming a heavy burden on the balance sheet.

The market is closely watching whether MicroStrategy will actually dump Bitcoin and how large the sale will be. Investors need to remain cautious, alert to potential negative impacts, and plan their capital allocation wisely.

(Note: The above content is for reference only and does not constitute investment advice. The digital asset market is highly risky; please make decisions prudently according to your own risk tolerance.)