Key Takeaways:
Strategy authorized the sale of as much as $1.25 billion of Bitcoin, abandoning its long-held never-sell posture as the crypto bear market pressures the company's balance sheet.
"Growing Bitcoin per share is still the ultimate goal, and being able to make dividend payments on its STRC perpetual preferred equity product is also a priority," the company said in its June 29 announcement of a new digital credit capital framework.
The framework establishes a board-approved U.S. dollar reserve equal to at least 12 months of annual dividend payments and interest expenses. Strategy also authorized $1 billion each of common stock and preferred stock repurchases. MSTR shares traded at $93.39 as of July 1, down 80% from their November 2024 peak of $473.83, according to Nasdaq data. The stock fell 43% in the first six months of 2026.
The shift introduces potential selling pressure on Bitcoin, which trades more than 50% below its all-time high. Strategy's ability to execute accretive capital market transactions — whether buying or selling — will determine whether the company can maintain its Bitcoin-per-share growth trajectory through the remainder of the bear market.
The announcement marks the most significant strategic pivot since Chief Executive Officer Michael Saylor began accumulating Bitcoin in 2020. Previously, the company had maintained that it would never sell its Bitcoin holdings, using equity and debt offerings to fund purchases. The new framework gives management flexibility to respond to market conditions, engaging in whatever capital market transactions are accretive to investors.
Bitcoin's prolonged bear market has forced the adjustment. When the digital asset's price rises, Strategy's balance sheet expands and its stock — which provides levered exposure to the crypto — outperforms. In the current environment, the company must manage downside risk while preserving its ability to service its perpetual preferred equity product.
The $1.25 billion authorization represents roughly 3% of Strategy's estimated Bitcoin holdings, based on the company's last disclosed position. The actual amount sold will depend on market conditions and the company's capital needs.
This article is for informational purposes only and does not constitute investment advice.
