Samson Mow proposed that Strategy execute an over-the-counter sale of 25,000 BTC to BSTR to increase its U.S. dollar reserve while expanding BSTR's corporate Bitcoin holdings. The transaction would allow BSTR's $1.5 billion in capital to be added to Strategy's USD reserve, raising it to $2.9 billion and increasing BSTR's holdings from 30,021 BTC to 55,021 BTC at a Bitcoin price of $60,000. The proposal emerged as Strategy faced scrutiny during weaker Bitcoin prices and volatility in MSTR and STRC.
Mow Proposes 25,000 BTC OTC Sale to BSTR
Mow framed the proposed transaction as a direct match between Strategy's need to replenish cash reserves and BSTR's interest in acquiring more Bitcoin. He said Strategy wants to rebuild its USD reserve, while BSTR wants to buy BTC.
The suggested deal would be an OTC transaction, meaning it would take place privately rather than through public exchange order books. Mow said such transactions are often used for large Bitcoin transfers because they can reduce visible market disruption compared with open-market selling.
Mow also said the transaction could give 25,000 BTC "a good home," comparing it to selling a classic car to a buyer expected to maintain it. He added that the arrangement would be peer-to-peer, referencing Bitcoin's original design language.
Mow noted that CEPO shareholders are scheduled to vote on a merger with BSTR on July 2.
Strategy Faces Capital Structure Pressure as STRC Trades Below Par
The discussion followed pressure on Strategy's capital structure as MSTR shares and STRC traded near 52-week lows. STRC, Strategy's variable-rate perpetual preferred stock with a $100 par value, reportedly traded near $74, representing a discount of about 26% to par.
Preferred shares trading below par can affect Strategy's ability to raise capital through preferred issuance on favorable terms. Strategy has used equity and preferred instruments to raise funds as part of its Bitcoin treasury strategy.
Bitcoin recently fell toward $58,000, while Strategy holds 847,363 BTC at an average purchase price of about $75,680 per coin. Based on those figures, the company's Bitcoin position would be below its average acquisition cost during the latest market decline.
Strategy also faces higher preferred dividend obligations, with annual dividend commitments rising from $300 million at the start of 2026 to $1.2 billion, while cash reserves have fallen 38% this year.
Strategy recently sold 32 BTC in its first Bitcoin sale in four years, reportedly to support preferred dividend obligations. The company has since purchased 520 BTC and allocated most of a $335.5 million equity raise to cash rather than Bitcoin.
Saylor and Schiff Respond to Strategy's Funding Model
Michael Saylor responded separately on X, saying volatility tests every capital structure and that Strategy remains focused on Bitcoin, disciplined capital allocation, credit quality, and long-term value creation. Saylor did not address Mow's OTC proposal directly.
Peter Schiff criticized Saylor's promotion of STRC, saying Saylor had presented the instrument to risk-averse investors as a way to remove Bitcoin volatility while offering an 11.5% yield. Schiff said STRC had fallen more than Bitcoin over the past month and argued that Saylor could face legal exposure from public statements about the product.
Schiff also repeated his criticism of Strategy's funding model, calling it a disclosed Ponzi structure in response to another user.
FAQ
What did Samson Mow propose Strategy do with BSTR?
Samson Mow proposed that Strategy execute an over-the-counter sale of 25,000 BTC to BSTR for $1.5 billion, which would increase Strategy's USD reserve to $2.9 billion and raise BSTR's holdings from 30,021 BTC to 55,021 BTC.
Why is Strategy facing scrutiny over its capital structure?
Strategy faced scrutiny as MSTR shares and STRC traded near 52-week lows, with STRC trading near $74, about 26% below its $100 par value. Strategy holds 847,363 BTC at an average purchase price of about $75,680 per coin, below current market levels, and faces annual dividend commitments rising from $300 million at the start of 2026 to $1.2 billion while cash reserves have fallen 38% this year.
How did Michael Saylor respond to the capital structure concerns?
Michael Saylor said on X that volatility tests every capital structure and that Strategy remains focused on Bitcoin, disciplined capital allocation, credit quality, and long-term value creation. He did not address Mow's OTC proposal directly.
