The Bitcoin sales strategy brings to the forefront a new phase in the policy of Michael Saylor's company: Strategy Inc. is expanding its range of financial instruments to maintain liquidity, buy back its own shares, and, if necessary, use Bitcoin as a source of cash.
According to Bloomberg, the company, known for its largest corporate bet on Bitcoin, has announced a major overhaul of the financial scheme that has supported its cryptocurrency strategy for many years. This involves not only selling part of its digital assets but also a more cautious approach to issuing new shares.
Strategy stated that it could sell Bitcoins worth up to $1.25 billion. This money is intended to replenish the cash reserve, giving the company more flexibility in payments and market volatility. At the same time, Strategy has launched two buyback programs: for common and preferred shares, each worth up to $1 billion.
Key decisions are as follows:
Management also intends to take a stricter stance on issuing common shares, especially in situations where the market price of the shares approaches the value of the company's Bitcoin assets. In pre-market trading, common shares of Strategy rose by about 5%.
For investors, this is an important signal: Strategy's stock is increasingly perceived not only as a stake in the company but also as a tool closely linked to the dynamics of its cryptocurrency portfolio. In English terminology, common stock is often referred to as "Stock," while preferred stock is referred to as "Preferred stock."
Previously, both common and preferred shares of Strategy sharply declined following Bitcoin. This hit the financial advantage that Michael Saylor had enjoyed for years: the company issued securities, attracted capital, and directed it towards new Bitcoin purchases.
The prolonged sell-off has called into question the sustainability of this self-sustaining model. If the market valuation of the company falls, attracting new capital becomes less advantageous. In this situation, Strategy leaves itself more room for maneuver: to conserve cash, buy back shares at a discount, and, if necessary, monetize part of its cryptocurrency. Selling Bitcoins in this logic does not appear to be a rejection of Bitcoin, but rather a backup source of liquidity for payments and interest expenses.
Even a small sale by Strategy can influence the mood of the crypto market: investors see that a large corporate holder of Bitcoin is willing to use part of its coins for liquidity and obligations.
The board of directors approved several key conditions for the new financial framework:
For STRC holders, the increase in dividends appears to be an attempt to maintain the attractiveness of the instrument, but it also makes a stable cash reserve and control over obligations more important for Strategy.
On Friday, the key valuation metric for Strategy, which had previously supported an optimistic view of the company, turned into a negative signal. The mNAV metric—the ratio of enterprise value considering debt and preferred shares to the value of Bitcoin assets—fell below par.
This means that the financial premium on which part of the investment narrative around Strategy was built has effectively disappeared. Over the past year, the company's shares have lost nearly 80%.
Against this backdrop, the significance of each decision made by Strategy becomes greater for the entire cryptocurrency market. Demand for Bitcoin increasingly depends on large institutional buyers, and Strategy remains one of the key players in this group. The main risk for the company itself is losing investor trust if the market decides that Bitcoin sales are a forced measure. For the cryptocurrency market, the risk lies elsewhere: large sales by such a participant can amplify volatility and worsen sentiment around Bitcoin.
In early June, Strategy sold 32 Bitcoins. This was the first such sale since 2022. In terms of size, the deal seemed small against assets of approximately $51 billion, but its symbolic weight turned out to be much more significant.
For many years, Michael J. Saylor built a strategy around a simple idea: attract capital, buy Bitcoin, and not sell it. Now the company shows that it is ready to use cryptocurrency to meet its obligations, including payments on preferred instruments. The specific change in policy is a shift from the principle of buying and holding to a more flexible scheme where Bitcoin can serve as a reserve source of liquidity.
This turn does not cancel Strategy's Bitcoin bet but changes its perception. The market now evaluates not only the size of the cryptocurrency portfolio but also the company's ability to maintain liquidity, service payments, manage debt, and not lose control over its capital structure. Even a bond or preferred stock in this story becomes part of a broader financial construct tied to the price of Bitcoin. In the long term, this makes Strategy's model less straightforward: the company still depends on Bitcoin but now balances more between growing its cryptocurrency portfolio, paying investors, and maintaining financial stability.
Against the backdrop of decisions made by large companies, it is important for private investors to separate Strategy's corporate model from their own steps. For beginners, several basic options are usually suitable:
Choosing a strategy depends on the level of risk, starting capital, investment term, and personal goals. Strategy's approach revolves around a large balance, issuance of securities, debt, and preferred stocks, while private investors often need simpler and more understandable solutions.
Security is important with any strategy: a mistake with a wallet, keys, or a link can cost more than a failed trade.
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