Strategy Files to Sell up to $1.25 Billion in Bitcoin (BTC)

Bitcoin News

Strategy, the Nasdaq-listed firm led by Michael Saylor, filed on June 29 to sell up to $1.25 billion worth of Bitcoin (BTC), the largest potential liquidation in its history as a corporate holder of Bitcoin. The company framed the move as a Bitcoin Monetization Program intended to strengthen its cash reserve, cover preferred-stock dividends, and service interest obligations. The official filing keeps the timing open, stating that sales would occur from time to time depending on market conditions. It marks the clearest structural retreat yet from the accumulate-at-all-costs approach Saylor spent years promoting to institutional and retail investors, and signals that the firm's funding model has come under measurable strain.

At the center of the shift is mNAV, the ratio of Strategy's enterprise value to the market value of its Bitcoin holdings, which fell below 1 for the first time on June 27. The figure is more than cosmetic. The entire capital engine depended on trading at a premium to net Bitcoin value, allowing the company to issue equity and preferred stock and recycle the proceeds into additional BTC at accretive prices. With mNAV at roughly 0.99, that flywheel has stalled: raising fresh capital now dilutes shareholders rather than adding Bitcoin per share, removing the mechanism that justified years of aggressive issuance.

The pressure concentrates in Strategy's preferred-stock stack. STRK carries an 8% annual dividend on about $584 million raised, STRF pays 10% and compounds to 18% if payments are missed on $711 million, and the newer STRD series generated roughly $979.7 million in net proceeds at a 10% non-cumulative rate. Combined, the annual preferred dividend burden exceeds $700 million. When Bitcoin traded near its late-2025 all-time high around $125,000 and mNAV sat comfortably above 1, covering those costs through new equity was straightforward. With BTC near $59,000 and a sub-1 mNAV, that route has effectively closed.

Alongside the potential sale, the filing authorized two separate share-repurchase programs of up to $1 billion each. One targets the firm's Class A common stock, the other its Digital Credit Securities, the umbrella covering the preferred series including STRK, STRF, and STRD. The buybacks suggest management views its own equity and credit instruments as undervalued at current levels, even as it prepares to monetize part of the treasury. The dual approach — selling Bitcoin while repurchasing securities — underscores how far the playbook has shifted from one-directional accumulation toward active balance-sheet management aimed at defending the preferred dividend obligations.

Saylor also unveiled a Digital Credit Capital Framework, described as a structure to strengthen the firm's digital credit, enhance liquidity, and preserve long-term Bitcoin exposure. The company's cash reserve currently stands at approximately $2.55 billion, a buffer that the $700 million-plus yearly dividend load can erode quickly without a functioning issuance channel. By keeping any Bitcoin sales discretionary and tied to capital needs rather than a fixed schedule, management retains flexibility but also leaves the market guessing on tranche size and timing. The framework reads as an attempt to reassure preferred holders that scheduled distributions remain fully funded.

This is not the first time the company has tapped its Bitcoin treasury. On June 1, it sold 32 BTC for approximately $2.5 million, a deliberately small transaction explicitly tied to funding preferred-stock distributions. The June 29 filing raises the potential scale by several orders of magnitude, moving from a symbolic top-up to authorization for a multi-billion-dollar program. The progression matters because it establishes a pattern: when issuance markets close, the treasury itself becomes the funding source. For a balance sheet built on the premise of never selling, that precedent reshapes how investors should price the firm's long-term Bitcoin conviction.

COINOTAG's proprietary 42-indicator composite scoring engine rates the $58,120 support at 84/100 — its strongest reading — anchored by the confluence of the lower Bollinger Band and Donchian channel base, with Bitcoin (BTC) changing hands near $58,960 as of this writing. Overhead, the engine scores the $60,869 resistance at 63/100, driven by the Prev Day High and ATR Upper, and the $70,429 reclaim level at 72/100 on Ichimoku Senkou B and the cloud top. RSI at 30.41 signals near-oversold conditions while MACD stays bearish. Derivatives show a 0.0006% funding rate and a 2.91 long/short ratio (74.4% long) against $11.9 billion in open interest — crowded longs that risk a squeeze. With the Fear & Greed Index at 15 (Extreme Fear), a reading consistent with deep bear-market psychology, and BTC dominance at 69.9% versus altcoins, a daily close below $58,120 would invalidate the bullish base.