Strategy Authorizes $1.25B in Bitcoin Sales in Capital Overhaul

Bitcoin News

Strategy, the corporate Bitcoin treasury once defined by its pledge never to sell, has authorized the sale of up to 1.25 billion dollars in Bitcoin (BTC) under a sweeping new capital plan. The company's investor-relations disclosure on June 29 unveiled a Digital Credit Capital Framework granting the board discretion to monetize part of its Bitcoin holdings when liquidity tightens. Proceeds would fund a dollar reserve, cover preferred dividends, and service debt. The move marks a structural reversal of Michael Saylor's long-standing accumulate-and-hold doctrine, and it surfaced fresh fears of supply pressure from the largest single corporate holder. Management stressed that any sale remains discretionary, not obligatory.

The framework lifts the annual dividend on Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, by 50 basis points to 12 percent effective July 1. STRC, the perpetual preferred instrument that became the company's primary financing channel in 2025, had slumped to roughly 71 dollars against its 100-dollar par value before the announcement. Alongside the dividend hike, the board approved up to 1 billion dollars in repurchases of outstanding digital credit securities and a further 1 billion dollars in buybacks of MSTR common stock. The company framed both buyback programs as accretive when its instruments trade at steep discounts to intrinsic value.

Strategy's common stock responded with its strongest session in weeks, climbing as much as 14 percent intraday on Monday to around 94 dollars and dragging the broader cohort of Bitcoin-linked equities higher. The stock had ground down from a May peak near 200 dollars under sustained risk-off pressure. Other treasury and exchange names joined the bounce: Nakamoto rose more than 10 percent at points, Strive added over 3.5 percent, while Coinbase advanced a more muted 2 percent. Bitcoin itself briefly reclaimed the 60,000-dollar mark during the session, though our reading of the tape showed the rally was equity-led rather than driven by fresh spot demand.

Central to the restructuring is a newly built dollar reserve that stood at roughly 2.55 billion dollars as of June 28, assembled partly through at-the-market common-stock sales over the prior week. The board ringfenced the cash exclusively for preferred dividend payments and debt-interest costs, which run near 1.76 billion dollars annually, with any other use requiring board approval. On its own the reserve covers about 17 months of those obligations; layered with the 1.25-billion-dollar Bitcoin monetization authority, total liquidity coverage extends beyond two years. The disclosure made clear the pivot is from one-way capital issuance toward active capital management, a notable discipline shift for the firm.

Strategy's official purchase record shows it held 847,363 BTC as of June 28, acquired for an aggregate 64.1 billion dollars at an average price of 75,651 dollars per coin. With Bitcoin trading below 60,000 dollars, the entire stack sits at an unrealized loss of roughly 13 billion dollars, context that reframes the monetization option as risk management rather than profit-taking. The company paused acquisitions during the June 22 to 28 window, and although it raised about 1.15 billion dollars through MSTR equity issuance, none of it bought coins. That capital instead flowed into the dollar reserve, a clear departure from years of accumulation near successive all-time-high prints.

Bitcoin closed out a punishing month, shedding more than 18 percent since the June candle opened near 76,690 dollars and finding no sustained bid on the descent. The token slid roughly 6 percent over the past week alone, retreating from a high near 64,400 dollars to lows around 58,800 dollars. On-chain and flow data point to six consecutive weeks of spot Bitcoin ETF outflows as a primary drag, with institutional selling compounding a broader risk-off rotation across altcoins. Bitcoin remains below its 50-month exponential moving average, a level whose loss historically signals deeper bear-market structure and erodes the optimism that defined the prior cycle advance.

COINOTAG's proprietary 42-indicator composite scoring engine rates the 58,120-dollar support at 84 out of 100, the strongest level on our board, anchored by the confluence of the lower Bollinger Band and a Donchian channel floor; spot last traded at 58,218 dollars, down 1.6 percent. To the upside, the engine scores 60,869-dollar resistance at 63 out of 100 on the prior-day high and ATR upper band, with the 70,429-dollar Ichimoku cloud top rated 72. An RSI of 30.4 and a bearish MACD confirm the downtrend. Derivatives stay precariously one-sided: a 2.89 long/short ratio, 74.3 percent long, against 11.8 billion dollars of open interest invites a long squeeze, while a Fear and Greed reading of 15 signals extreme fear. A daily close below 58,120 dollars would invalidate the bullish base.