Strategy (formerly MicroStrategy) authorized up to $1.25 billion in Bitcoin sales and a $2 billion share buyback program on Monday, marking a dramatic shift from Executive Chairman Michael Saylor's long-standing 'never sell' posture. The company also lifted its STRC preferred dividend to 12%, a move designed to reassure investors that it can meet its preferred stock obligations as funding pressures mount.
The capital pivot comes as both of Strategy's primary funding engines have seized up. MSTR is now trading below its Bitcoin's net asset value, while STRC has fallen 26% below par — a record low that has constrained the company's ability to raise fresh capital through convertible note offerings or preferred equity. Bitcoin's price hovering near $59,800 has compounded the squeeze, narrowing the spread that once made Strategy's arbitrage model work.
Shares jumped on the announcement, though the broader crypto market showed mixed signals. Bitcoin added 0.6% to $59,800, while SOL rose 2%. Derivatives data and chart formations still point to continued downside risk, and market participants are bracing for a pivotal week featuring Fed Chair Kevin Warsh's speech and US jobs data. The authorization to sell Bitcoin — even if not yet executed — has already begun to reshape the narrative around corporate Bitcoin treasury strategies.
Analysts remain divided on whether this marks a tactical liquidity move or a more fundamental break from Strategy's core investment thesis. The ability to sell up to $1.25 billion in BTC provides near-term breathing room, but it also introduces a new source of sell pressure on Bitcoin if executed. The company has not yet disclosed how much, if any, Bitcoin it has sold under the new authorization.