Strategy Authorizes $1.25B Bitcoin Sale, Reversing Never-Sell Pledge

Bitcoin News

Strategy authorized the sale of up to $1.25 billion in Bitcoin (BTC) on June 29, unveiling a Digital Credit Capital Framework that ends years of never-sell guidance for the largest corporate Bitcoin holder. The company's investor-relations disclosure confirms the board approved a BTC Monetization Program to replenish a newly created U.S. dollar reserve, cover preferred dividends and service debt. Strategy said the reserve had grown to $2.55 billion, enough to cover roughly 17 months of about $1.76 billion in annual dividend and interest obligations. The firm also lifted the dividend on its STRC preferred stock to 12% and authorized $1 billion in common-stock buybacks plus $1 billion in preferred repurchases.

The announcement triggered a sharp rebound across bitcoin-linked equities. Strategy (MSTR) shares jumped as much as 14% to roughly $94, their best single-day gain in weeks, after months of grinding lower from a May high near $200. The rally rippled outward: Nakamoto (NAKA) climbed more than 10%, Strive (ASST) gained over 3.5%, and Coinbase (COIN) added about 2% at its intraday peak. The move arrived even as Bitcoin hovered near $60,000, having shed roughly 6% over the prior week and more than 18% on the month. Six straight weeks of spot ETF outflows had weighed on the price throughout June.

Behind the overhaul sits a structural problem: Strategy's enterprise mNAV — a metric that divides total market value, including debt and perpetual preferred shares, by the worth of its Bitcoin holdings — slipped below 1. That signals the market now values the company's entire capital structure below the underlying coins it holds, breaking the credit-premium loop that let Strategy issue richly priced equity to accumulate Bitcoin for years. The damage showed in its STRC perpetual preferred, which crashed to a record low near $71.25 against a $100 par value, stripping the instrument of its issuance appeal and forcing the dividend increase to restore demand.

Monday's bounce snapped a nine-day losing streak for the stock, which had set 52-week lows the prior week alongside its preferred shares. MSTR closed up about 12.6% at $92.68, while STRC recovered 12.2% to $83.67. One analyst described the framework as a robust, point-by-point answer to investor concerns, reiterating a Buy rating with a $570 price target. The shift means Strategy will now issue common shares only when it trades at a premium to enterprise value and may opportunistically repurchase securities during market dislocations — a far more disciplined posture than its previous one-way capital issuance model.

The reversal marks a striking departure for Michael Saylor, who built his reputation on vows never to sell and once quipped that holders could sell a kidney to keep their Bitcoin. Executive chairman Saylor framed the change as evolving from one-way capital issuance to active capital management, while CFO Andrew Kang distilled it to a phrase: Bitcoin is capital. The company insists it remains committed to Bitcoin as its primary treasury reserve asset and stresses there is no obligation to sell. Still, the explicit $1.25 billion sale authorization permanently erased any impression that Strategy intends to hold its entire 847,363-coin stack indefinitely.

Broader research framed the sell-off as cyclical rather than terminal. With Bitcoin breaking below $60,000 this week — down more than 50% from its October all-time high near $125,000 — analysts argued the drawdown remains a correction within a longer uptrend rather than a true bear market. They tied recent pressure to shifting Fed expectations, with markets now pricing potential rate hikes rather than cuts, plus uncertainty over the CLARITY Act and Strategy's leveraged balance sheet. A cycle bottom, the view holds, could be near if the CLARITY Act clears the Senate and the Fed pauses. The same week brought an 8.5% USDT premium in India as enforcement actions tightened stablecoin inflows.

COINOTAG's proprietary 42-indicator composite scoring engine rates the $58,115 support at 82/100 — the strongest level on our board — anchored by a Fibonacci 0.000 retracement, the Donchian lower band and a prior swing low, with spot at $59,374 sitting just above it as of writing. Overhead, our engine scores the $60,738 resistance at 76/100, built on the prior-day high and a high-volume node. Derivatives data shows a near-flat 0.0018% funding rate and a crowded 2.77 long/short ratio (73.5% long), a setup vulnerable to a downside flush. With RSI at 31.98 and the Fear & Greed Index at 15 (Extreme Fear), a daily close below $58,115 would invalidate the bullish case and open the $51,387 zone.