Strategy Opens The Door To Selling Bitcoin: $1.25B Framework Ends Saylor's 'Never Sell' Era

(MENAFN- Investor Ideas) newswire ) a trusted platform for investing ideas including crypto and blockchain stocks issues market commentary on today's Bitcoin related movers.

Strategy, the company formerly known as MicroStrategy, disclosed a new Digital Credit Capital Framework this week tying its Bitcoin holdings, preferred securities and equity capital structure together, according to a Securities and Exchange Commission filing. The framework includes a board approved USD Reserve policy, with a balance of about $2.55 billion as of June 28, that may be used only to pay preferred stock dividends and interest, along with a required minimum reserve equal to at least 12 months of those obligations.

The filing also authorizes a BTC Monetization Program permitting Bitcoin sales from time to time to generate up to $1.25 billion for the reserve, fund dividend and interest payments, and support buybacks. Strategy separately authorized up to $1.0 billion in repurchases of its Digital Credit Securities and up to $1.0 billion in repurchases of its Class A common stock, and raised the dividend rate on its STRC preferred shares to 12.00 percent annually for record dates on or after July 1, according to a Business Wire release. As of June 28, Strategy held 847,363 bitcoin purchased for an aggregate of about $64.10 billion, an average cost near $75,651 per coin, with no new bitcoin acquired in the final week of June.

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The move formalizes a shift away from Executive Chairman Michael Saylor's longstanding never sell stance toward what the company is calling active capital management. JPMorgan analysts led by Nikolaos Panigirtzoglou warned this week that the sale option introduces two way risk, arguing that the possibility Strategy would sell bitcoin adds uncertainty and volatility to crypto markets that could have been avoided had the company instead issued equity to rebuild its reserves. JPMorgan said the current $2.55 billion reserve covers roughly 17 months of obligations and should be expanded to cover 24 to 36 months, noting Strategy accounts for about 70 percent of total net digital asset inflows so far this year. Strategy's own disclosures put reserve coverage closer to 25.9 months once the new BTC Monetization Program's capacity is included, a figure JPMorgan's estimate does not incorporate.

MSTR shares rose about 9.5 percent this week, including a single-day gain of roughly 8 percent, on the news. Bitcoin itself traded around $61,500 to $61,850 Friday, up roughly 2.5 percent on the day, though it remains well below its October 2025 all time high near $126,198.

US equity markets are closed today for the observed Independence Day holiday, while Bitcoin continues to trade around the clock. Price figures above are intraday snapshots and can change materially through the long weekend.

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