Strategy (MicroStrategy) has officially authorized the sale of Bitcoin.
Wall Street responded with a double-digit surge, with Strategy's stock rising 14% intraday.
Over the past year, Bitcoin dropped from $126,000 to under $60,000, resulting in over $13 billion in unrealized losses for Strategy’s holdings of 847,363 Bitcoin. More critically, the company’s stock price fell by approximately 80%, and its market capitalization dropped below the value of its Bitcoin holdings for the first time—the premium that supported its continuous issuance of shares and bonds to buy more Bitcoin disappeared. With financing windows closed, Strategy had to turn to its internal assets to meet annual obligations of nearly $1.8 billion in dividends and interest payments.
"Comeback" Plan
Facing this prolonged decline, Strategy has finally unveiled its "comeback" plan.
The Form 8-K filed on June 29 reveals that the company has officially launched the "Digital Credit Capital Framework," with one core objective: authorizing the sale of Bitcoin under strictly defined conditions.
Specifically, proceeds from Bitcoin sales may only be used for three purposes: to increase the U.S. dollar reserve by up to $1.25 billion; to pay dividends and interest on preferred shares; and to execute the repurchase program. Any sales beyond these limits require separate board approval. The company also emphasizes that this does not constitute any obligation to sell.
Meanwhile, Strategy also launched a $2 billion buyback program—$1 billion each for preferred shares and Class A common shares; increased the dividend rate on STRC preferred shares from 11.5% to 12%; and formally established a U.S. dollar reserve policy requiring at least enough cash to cover 12 months of fixed expenses. As of June 28, this reserve amounted to approximately $2.55 billion.
CEO Phong Le defines this transformation as an evolution from "one-way capital issuance" to "active capital management." Michael Saylor emphasizes that the framework aims to "strengthen credit quality" while "maintaining long-term exposure to Bitcoin."
The path of buying only and never selling no longer works; now you must learn to trade both ways.
MSTR's stock has declined for eight consecutive trading days, marking its longest losing streak since December 2022. The stock has fallen approximately 81% from its all-time high of $457.22 in July 2025 and is down more than 43% year-to-date. STRC preferred shares have dropped to around $75, significantly below their $100 par value.
In this climate of panic, Strategy provided three direct responses in quick succession: stock buybacks to support the share price, an increased dividend to reassure preferred shareholders, and a dollar reserve policy to alleviate concerns about default. Benchmark analyst Mark Palmer had previously noted that the market’s continued focus on STRC’s sharp price decline is a key factor pressuring MSTR.
In other words, the market is not celebrating the ability to sell coins—it is celebrating the fact that a clear crisis response plan has finally been established.
However, MSTR’s fundamentals remain fragile. With an average purchase cost of approximately $75,646, the Strategy holds 847,363 bitcoins, resulting in an unrealized loss of about $14 billion. The company’s mNAV (market value to Bitcoin holdings ratio) has fallen below 1 for the first time, indicating that the market no longer pays any premium for its "Bitcoin proxy" narrative.
What does it mean for Bitcoin?
It doesn't seem that optimistic.
CryptoQuant data shows that MicroStrategy's cash reserves have declined by 38% by 2026, and all Bitcoin purchased in 2024, 2025, and 2026 are currently underwater. Chainlink community liaison Zach Rynes bluntly stated: "STRC is the canary in the coal mine. If it cannot return to par value, it will be a very ominous sign for MSTR and the entire Bitcoin market."
The optimists offer a completely different interpretation. Grayscale’s research head, Zach Pandl, presents a counterintuitive view: that Strategy could actually restore market confidence by selling approximately $3 billion in Bitcoin—enough to cover nearly all of its cash obligations over the next two years. The logic is this: the greatest uncertainty for investors is “when and whether Strategy will sell,” and a controlled, transparent plan could eliminate this negative pressure.
Investment expert Thomas Braziel commented: "This is a very prudent plan. It’s a win for Bitcoin, a win for common shareholders, and a win for preferred shareholders. If Bitcoin can maintain around $60,000 and Strategy sells up to $1.25 billion in BTC, it would be a tremendous validation of Strategy’s model as a Bitcoin reserve company."
Although "selling coins" is seen as a negative signal by crypto believers, for publicly traded companies, adjusting strategy to ensure survival during cash flow shortages is a more rational choice.
However, when a company’s entire capital structure is built on the expectation that Bitcoin will always rise, the line between "active management" and "forced selling" is far blurrier than one might imagine.
To crypto insiders, this is just another familiar script—full of faith on the lips, full of chips in hand, ending in nothing but calculated moves.
Thought it was faith, turned out to be business.
Author: seed.eth
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